Cabinet to consider FDI liberalisation next week, says Sharma
New Delhi: The Cabinet will take up the issue of relaxing FDI norms in about a dozen sectors next week, Commerce and Industry Minister Anand Sharma said on Thursday.
"Decision taken earlier this week on FDI liberalisation will be sent for Cabinet approval next week," Sharma told reporters after meeting Finance Minister P Chidambaram.
Unleashing the second wave of FDI reforms, Prime Minister Manmohan Singh approved relaxing the foreign investment norms in 12 sectors including telecom, defence production and petroleum refining.
Replying to a query on FDI norms for existing pharma projects, Sharma said the issues would be resolved soon.
He also said clarity on FDI in multi-brand retail will be given soon. Foreign retailers had sought clarity on the mandatory norm of 30 percent sourcing from small and medium companies in India.
While approving relaxation in FDI norms, the high-level meeting chaired by Singh did not take a view on raising FDI limits in sectors like civil aviation, airport, media, multi- brand retail and brownfield (existing firms) pharmaceuticals.
India permits 100 percent FDI in pharma sector through automatic approval route in the new projects, but foreign investments in the existing companies are allowed only after FIPB's approval.
The Department of Industrial Policy and Promotion (DIPP) has been expressing concern over a spate of acquisitions of domestic pharma firms by multinationals.