 "Govt favours 100% FDI in telecom, greater inflows in other areas")
Strongly favouring hike in FDI cap to 100% in the telecom sector, Commerce and Industry Minister Anand Sharma today said he would soon move Cabinet for further liberalisation in other sectors as well which hold potential for FDI inflows.
Sharma also said that he would meet the Defence Minister on increasing foreign direct investment (FDI) ceiling in the defence sector.
"I am strongly in favour of raising the cap in telecom sector. I have discussed this with the Telecom and Finance ministers and once we have the proposal, we will move the Cabinet for raising the cap to 100%, and also for FDI in defence," he told reporters.
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He said his ministry wants global majors in defence sector to partner with both the PSUs and the private sector.
"...So that the big outgo of foreign exchange be brought down and domestic manufacturing improves," he added.
Sharma said he will hold deliberations with Prime Minister Manmohan Singh for inviting more foreign investments in the defence and telecom sectors.
On retail, he said that he will chair a Retail Round Table involving CEOs of Indian companies and foreign investors on June 27 here to seek views on implementation issues and to address their concerns, if any.
Sharma would address global investors in different cities including London, Paris and St. Petersburg. He said that after the consultations, the government is likely to come up with clarifications and simplification of guidelines wherever required.
The DIPP has already once released clarification on mutli-brand retail sector.
FDI of up to 26% is permitted in the defence sector. The cap in telecom sector is currently fixed at 74%.