New Delhi: The Union Cabinet approved a plan on Wednesday to raise the amount of Foreign Direct Investment (FDI) allowed in its Defence and Railways industries, part of Prime Minister Narendra Modi’s efforts to attract more foreign cash and revive the economy.
The government is to increase the foreign investment limit in the Defence industry to 49 per cent from 26 per cent, a senior Cabinet minister said following a cabinet meeting.
Limits will be lifted altogether on foreign investment in railway infrastructure, although foreigners will still be barred from investing in railway operations, the minister said, speaking on the condition of anonymity.
Cabinet approval for the plans was widely expected after Modi’s two-month old government said it would ease foreign investment limits in its budget last month.
The government’s efforts to push through such reforms and open up the economy have already come up against early resistance, however. (Reuters)