UP CM Akhilesh questions Centre's move to increase FDI cap

Uttar Pradesh Chief Minister Akhilesh Yadav on Tuesday trained guns at the Centre for liberalising the Foreign Direct Investment (FDI) regime, saying the BJP-led NDA Government needs to introspect whether their decision will be profitable for the country or not.

"The BJP has opened such gates in FDI that all political parties need to think if we are going to make profit or will go into loss," he told the media.

"What will happen with a flexible FDI? Business and foreign investments will flow in. But before that they should prioritise what their need is," he added.

The present FDI regime permits 49 percent FDI participation in the equity of a company under automatic route. The foreign investment beyond 49 percent has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded.

Monday's decision will allow 100 percent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.

The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi.