Government Considering to Rise FDI Cap

The Finance minister told that the government has been planning to rise the limit cap on the Foreign Direct Investment (FDI) in sectors including defense and insurance sector. 

A committee has already been set up by the government to review the FDI sectoral caps, Chidambaram, said "Let the report (of the FDI committee) come and I feel many caps deserve to be either relaxed or removed.

On raising FDI cap in the defense sector he said "I am sympathetic to it and the committee will have to decide if the cap needs to be reviewed, There were many caps imposed at different points in time. We have set up a committee to go into the nature of each cap and ask a question: Has the cap served a purpose? Does it continue to serve a purpose? If it does, let the cap continue. If it does not, then the cap should either be relaxed or removed" he added.