 "Cabinet nod to FDI in defence, railway infra")
The decisions were taken at the Cabinet meeting headed by Prime Minister Narendra Modi, sources said.
The FDI ceiling in the sensitive defence sector has been hiked to 49% from current 26%, with the condition that control in joint ventures for manufacturing of defence equipment will remain in Indian hands.
Also Read
The move is aimed at boosting the domestic industry, which imports up to 70% of its military hardware.
In relation to the railways, the Cabinet approved allowing 100% FDI in areas such as high-speed train systems, suburban corridors and dedicated freight line projects implemented in PPP mode.
Finance Minister Arun Jaitley in his Budget speech for 2014-15 had announced plans to increase FDI in the defence sector and open up the cash-starved government-owned railways.
The Cabinet today gave approval to the announcements made in the Budget.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%