Highlights: Government relaxes FDI norms

New Delhi: Following decisions on FDI limits were taken on Thursday at the Cabinet meeting chaired by Prime Minister Manmohan Singh.

- Relaxes norms for Multi-brand Retail Trading (MBRT)

- Eased mandatory 30 per cent local sourcing norm for MBRT players

- Local sourcing norm to apply only in first engagement

- FDI cap in telecom raised to 100 per cent from 74 per cent; up to 49 per cent through automatic route and beyond that via FIPB

- FDI cap in defence production to stay at 26 per cent, higher investment may be considered in state-of-the-art technology production by Cabinet Committee on Security on case to case basis.

- 100 per cent FDI in single brand retail; 49 per cent through automatic route, 49-100 per cent through FIPB

- No decision on raising FDI in insurance from 26 per cent to 49 per cent

- FDI up to 49 per cent in petroleum refining allowed under automatic route, from earlier approval route

- In power exchanges, 49 per cent FDI allowed through automatic route, from earlier FIPB route.

- Raised FDI cap in asset reconstruction firms to 100 per cent from 74 per cent; of this up to 49 per cent will be under automatic route

- FDI increased in credit information firms to 74 per cent from 49 per cent

- FDI up to 49 per cent in stock exchanges, depositories allowed under automatic route

- FDI up to 100 per cent through automatic route allowed in courier services

- FDI in tea plantation up to 49 per cent through automatic route; 49-100 per cent through FIPB route.