Commerce and Industry Minister Anand Sharma today said he will soon move Cabinet for raising FDI cap in telecom and defence sectors as the government wanted to revive economic growth and spur investments.
"I am strongly in favour of raising the cap in telecom sector. I have discussed this with Telecom and Finance ministers and once we have the proposal, we will move the Cabinet for raising the cap to 100 per cent, and also for FDI in defence because we want defence manufacturing to be here (in India)," he told reporters.
Sharma, who leaves on a 10-day visit tomorrow for Helsinki, St Petersburg, Belfast and London, said he will meet global retailers and address their concerns and ensure all help in setting up stores in India.
He said his ministry wants global defence majors to be partner both with the PSUs and the private sector to manufacture weapon systems in India.
"We want the global majors to partner with the Indian entities...So that the big outgo of foreign exchange is brought down and domestic manufacturing improves and jobs are created," he said.
Currently, 26 per cent FDI is permitted in the defence sector. The cap in telecom sector is fixed at 74 per cent.
He said these are the areas of high priority given its potential for enhancing capabilities of manufacturing and technology transfer in India.
Sharma will also address global investors in different cities during his tour. He said that after consultations, the government may come up with clarifications and simplification of guidelines wherever required.
He also gave directions to his officials that hand holding support be given to all foreign investors to facilitate foreign investment.
Economic growth rate slipped to a decade low of 5 per cent in 2012-13 and FDI inflows during the last fiscal declined by 38 per cent to USD 22.42 billion in 2012-13.
