The Hindu : Business : GoM to study revision in sectoral FDI caps

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Tuesday, Dec 06, 2005

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Business

GoM to study revision in sectoral FDI caps

Special Correspondent

The objective is to attract inflows to sustain high GDP growth

NEW DELHI: The Central Government has set up a Group of Ministers (GoM) to explore the possibilities of rationalisation of foreign direct investment (FDI) caps on various sectors as also simplify the procedures for approval of such investments.

According to the Secretary, Department of Industrial policy and Promotion (DIPP), Ajay Dua, the GoM was constituted on Thursday last following a proposal to that effect submitted by the Department to the Cabinet for approval. The objective of the FDI cap revision is to attract larger FDI inflows into various sectors so as to sustain the high GDP (gross domestic product) growth achieved in the first two quarters of the current fiscal.

"The GoM will cover all sectors that are currently receiving FDI," Mr. Dua said here on Monday on the sidelines of a seminar on utilising patents for wealth creation. He, however, made it clear that the GoM did not have the brief to consider FDI in the retail sector.

The members of the GoM include the Agriculture Minister, Sharad Pawar, the Finance Minister, P. Chidambaram, the Commerce and Industry Minister, Kamal Nath, the Communications and IT Minister, Dayanidhi Maran, and the Minister for Mines, Sisram Ola.

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