Amid dwindling foreign direct investment (FDI) inflows, the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry has issued a discussion paper arguing the need to impose restrictions on certain sectors and seeking greater clarity between FDI and FII. The focus of the discussion paper – now in public domain for feedback – is on the relevance and importance of equity caps in the present-day business environment in presence of sectoral regulatory conditions.
Dipp has also sought clarification on whether the caps specified are in respect of FDI alone.