The N K Singh committee on foreign direct investment (FDI) has recommended that the sectoral caps in banking, insurance, telecommunications, civil aviation and special economic zones (SEZs) be relaxed. The report will be submitted by to Prime Minister Atal Bihari Vajpayee tomorrow.
The report is understood to have suggested progressive liberalisation of the FDI policy in order to achieve around $4.5 billion annual foreign investment inflow during the Tenth Five-Year Plan. It is also in favour of making the Foreign Investment Promotion Board (FIPB) a statutory body, and empowering it in order to facilitate FDI.
As per the existing norms, the FDI cap in banking and SEZs is 49 per cent, while it is 26 per cent in insurance and telecommunications. In case of telecommunications, the report has suggested that the cap be removed.