FDI review draft this month: Nath

The Department of Industrial Policy and Promotion DIPP has been working on the draft for the last several months. Though India has relaxed FDI rules with 100 per cent foreign investment allowed in many areas, it has kept caps for select fields like insurance, aviation and telecom.

Different options like automatic route are available to investors for clearances. But in large projects and those of strategic importance to the country, the proposals are cleared by the Foreign Investment Promotion Board FIPB in consultation with different ministries, including Defence and Home.

The country has been witnessing robust growth in FDI which touched about 15 billion in 2006-07. The government aims to attract FDI in excess of 25 billion this fiscal.