CII underscored that recent amendments to policies and tax structures, some retrospective, have detracted investors and are somewhat responsible for the slump in FDI inflows. These issues, CII said, can be resolved by bringing in a stable policy regime.
'The industry body had been engaging with the Government and expressing the need to raise FDI caps, streamline the approval process and iron-out stringent and complicated procedural matters,' said Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry.
CII said that the move to allow 100 per cent FDI in telecom would help domestic operators ease their debt burden. It also said allowing 49 per cent FDI in insurance sector would help bring world-class business practices and processes in India and also help expand distribution capabilities and deepen market penetration.