Cabinet to take up FDI review on Thursday

NEW DELHI: With demand for investment in infrastructure growing ever more, the Cabinet is likely to review on Thursday the existing Foreign Direct Investment policy with a view to further liberalise it.
The meeting is expected to examine in detail the current policy, the caps in various sector and FDI flows therein to prepare the future strategy.
It comes close on the heels of the government notifying 74 per cent FDI in telecom and raising the cap in Asset Reconstruction Companies to 49 per cent.
India, which is an aggressive player in services sector, is under pressure from developed countries in World Trade Organisation negotiations for further opening up of some of the key sectors like insurance and banking.
There is increasing pressure from United States and other developed countries to open up retail sector, which is being vehemently opposed by the Left Parties championing the cause of petty traders.
US Treasury Secretary John Snow, currently on a visit to India, has made a strong pitch for further opening up Indian banking and financial sectors to foreign investors, while making a case for throwing open the retail sector to FDI too.
India does not allow FDI in retail trading, atomic energy, gambling or betting, lottery business, business of chit fund, nidhi company, housing and real estate business except for development of townships, housing, built up infrastructure, trading in transferable development rights and agricultural or plantation activities.