The Indian government on Tuesday decided to allow 49 percent foreign direct investment (FDI) in the defense sector and insurance sector, said local media.
However, the increase in defense FDI, which rises from 29 percent, will be on a case-to-case basis, after clearance from the Cabinet Committee on Security headed by prime minister himself, said the report.
The increase of FDI was opposed by Defense Minister A.K. Antony, said the report.
The government has also raised ceiling of FDI in insurance sector to 49 percent while clearing the decision to increase FDI in the telecom sector from 74 percent to 100 percent during a cabinet meeting chaired by Prime Minister Manmohan Singh, said Indo-Asian News Service.
The Indian economy is seeing an apparent slowdown and Prime Minister Singh consulted with Finance Minister P. Chidamrabam Monday on how to keep it running.
India has been reluctant to draw FDI in various sectors including the lucrative retail sector and aviation.