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Government Plans to Ease, Scrap FDI Sectoral Limits

Updated: Jan 18, 2022

The government is likely to either increase or scrap the foreign direct investment (FDI) limit in sectors where it is set at less than 100%, in an ambitious reform to encourage foreign investors to loosen their purse strings and thus step up FDI flows to rein in current a/c deficit The government has noticed that FDI caps provide an opportunity for Indian promoters to make quick money but puts unnecessary hurdles in the way of foreign direct investment, which is considered the most stable form of capital inflow.

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