Briefing reporters after the Cabinet meeting, Finance Minister Arun Jaitley said that "from now onwards, all FIIs, NRIs and other foreign investments... Will be clubbed. It will be constituted as a composite cap".
The proposal is aimed at simplification of FDI policy with a view to attracting foreign investments and also improving ease of doing business in India.
Under the existing policy, there are different caps for separate investment categories like FDI, FII and NRIs.
The ministry has proposed a composite foreign investment cap (FDI + FPI (FII, QFI) + NRI + FVCI) in sectors, including agriculture, tea, mining, broadcasting, media, airports, retail (single brand and multi-brand), e-commerce, asset reconstruction companies, banking, commodity exchanges and insurance.
In 2014-15, investment by foreign institutional investors (FIIs) grew 717 per cent to USD 40.92 billion. FDI grew 27 per cent to USD 30.93 billion in the previous fiscal.