The new Finance Minister has said that the Ministry is working on a policy document for further liberalisation of the foreign investment policy. The key amendments we can expect out of this policy change are likely to be:
1. Composite cap for all types of investments including FDI, FII, NRI and others.
2. Opening up most sectors like railways, ecommerce etc (other than strategic sectors) to foreign investment upto 49% under the automatic route. Defence could benefit too.
3. Categorisation of sectors based on National Industrial Code to ensure clarity.
On 16 July 2013, the Government of India raised caps in foreign direct investment into as many as nine sectors in the pursuit to attract greater capital inflows and stem the fall in rupee. A summary of the announcement has been discussed briefly here.