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Government to review FDI regulation

business Updated: Mar 16, 2007 13:30 IST
PTI
Govt to review FDI regulation

The Government on Friday said it is looking at having an uniform Foreign Direct Investment (FDI) cap in different business segments within a sector as part of the review to streamline foreign investment regulations.

The same FDI limit in different segments within a sector would reduce the complexity and result in caps going up in different business area in sectors like media and aviation.

"We will see that...," Commerce and Industry Minister Kamal Nath said when asked whether the government plans to have a single FDI cap for an entire sector.

Nath said that the status review of the FDI policy and regulations was in progress to see how they can be streamlined.

In the review, the government is also looking at liberalising FDI in sectors that could become big employment generators with foreign capital.

"Based on our experience (so far) we will be seeing how it (the more liberal FDI policy) can generate employment," he said.

The review, which was last done in March 2006, has been postponed by a month due to the Budget Session of Parliament.

The review will come up when Parliament is in recess, official sources said. Parliament goes into recess from March 21 and will meet again on April 18.

The government is likely to allow foreign investors to pick stake in commodity exchanges and change norms and caps for aviation, petroleum and retail following the review.