#UnionBudget 2014: Govt readies plan for 51% FDI in defence
Ahead of the Budget, the government is ready with a series of proposals to increase overseas flows into the economy, including a composite foreign investment ceiling that includes shares held by FIIs and venture capital firms and slightly diluted norms for FDI in defence. A formal proposal to allow 100% in the several segments of the construction business is also ready and will be sent for consultations over the next few days.
Senior government officials told TOI that the department of industrial policy and promotion, which had proposed a graded regime in regime that allowed 74% FDI if a foreign investor transferred technology and 100% for state-of-the-art equipment is now willing to lower the bar a little. So, a fresh plan that seeks to increase the ceiling from 26% to 49% for cases without transfer of technology and 51% with technology transfer is being discussed.
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