Controlling FDI

On the first of next month, Prime Minister Manmohan Singh is supposed to review various sectoral caps on FDI and, as preparation to that meeting, economic affairs secretary Arvind Mayaram has submitted a discussion paper arguing for doing away with various equity caps. The broad principle is a simple one: remove the cap if doing so makes life easier for the foreign investor without materially affecting the level of control the government wants the foreign investor to have.

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