Government drops restriction on foreign investments

17 Jul 2013

The Indian government has given final approval to a measure which removes all caps on foreign direct investment (FDI) in local firms, including those operating in the telecoms sector. The existing FDI limit of 74% has been removed and overseas investors can now hold up to 100% of an Indian company. Up to 49% can be acquired without government intervention, while any attempt to take a holding higher than that must first be approved by the Foreign Investment Promotion Board.