India plans raising FDI caps in sectors including defence: Rajan

NEW DELHI (Reuters) - India plans to raise caps on foreign direct investment in sectors including defence, chief economic adviser Raghuram Rajan said on Tuesday.

India currently allows 26 percent foreign direct investment in the defence sector.

In a bid to attract foreign inflows into the country, India allowed foreign companies last September to invest in local supermarkets and local airlines.

(Reporting by Manoj Kumar; Editing by Jijo Jacob)