The Department of Industrial Policy and Promotion (DIPP) in the Government's Commerce Ministry issued a discussion paper inviting public comment on its current policy of capping foreign direct investment (FDI) in various sectors.
The purpose of the discussion paper is to help further rationalise India's FDI policy, specifically on issues related to ownership and control. Any rationalization would be welcome, given the 30% drop in annual FDI inflows India experienced in 2010, while other BRIC economies continued to see increased FDI inflows during the same year.