In a major reform push, the government on Tuesday decided to liberalize and hike foreign direct investment (FDI) limits in insurance, retail, telecom, defence and a host of other sectors. 
 

The decision was taken during a meeting of senior cabinet ministers chaired by Prime MinisterManmohan Singh. 

In another decision, the government also cleared the much-awaited 100 percent foreign direct investment (FDI) in the telecom sector from the existing 74 per cent. 

Talking to reporters after the meeting, commerce and industry minister Anand Sharma said the foreign direct investment limit in insurance sector will be hiked to 49 per cent from the existing 26 per cent. 

In multi-brand retail, up to 49 per cent overseas investment would now be allowed through automatic route. 

Under the existing policy, FDI in multi-brand retail sector is allowed after approval from the Foreign Investment Promotion Board (FIPB). 

Sharma said the government has decided to liberalize norms for multi-brand retail sector on growing demands from the overseas retails. (Times of India)