DIPP seeks review of FDI sectoral caps

Amid dwindling foreign direct investment (FDI) inflows, the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry has issued a discussion paper arguing the need to impose restrictions on certain sectors and seeking greater clarity between FDI and FII. The focus of the discussion paper – now in public domain for feedback – is on the relevance and importance of equity caps in the present-day business environment in presence of sectoral regulatory conditions.

Dipp has also sought clarification on whether the caps specified are in respect of FDI alone.