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Industry hails govt's move to open FDI in major sectors

Leading industry bodies FICCI and CII Tuesday welcomed the government's move to hike foreign direct investment (FDI) limits in insurance, retail, telecom, defence and a host of other sectors.

"We welcome this move. This was long-awaited. It showed such a broad view to make the process easier by moving from the FIPB to automatic route and the significant increases in telecom, insurance and defence sectors are indeed welcomed. This should bring FDI into the country, which will help in our current account deficit and encourage fresh investment in the country," Federation of Indian Chambers of Commerce & Industry (FICCI) president Naina Lal Kidwai said.

A CII statement said it welcomes the move.

"CII welcomes the decision to liberalise sectoral FDI limits and put more sectors on the automatic route," the statement said.

The government has cleared 100 percent FDI in telecom, raised FDI in insurance to 49 percent, in asset reconstruction from 74 percent to 100 percent and in credit information companies from 49 percent to 74 percent.