INDIA: Moves towards removal of India FDI caps

Wednesday March 20 2013

Further to the update of 28 February, India’s finance minister Palaniappan Chidambaram has stated the nation may ease restrictions on India foreign-direct investment. Media reports quote him as stating that any caps can be removed or certainly relaxed and a review of the limits has begun.

The review may herald a sweeping relaxation of the investment caps in as many as two dozen industries ranging from telecommunications to banking, which would be India’s biggest opening to overseas companies since the 1990s.

The move follows the release of government data which shows India foreign direct investment in India fell 34% to $22.8 billion in 2012.

This information will be updated as further details become available.