The Eleventh Plan draft document has built a strong case for relaxing foreign direct investment norms in key sectors like insurance, private banking, single brand retailing and broadcasting.
"The progress regarding elimination of FDI limits in key sectors also needs to continue in order to increase FDI flows and stimulate transfer of technology, which is critical for improving competitiveness," said the 11th Plan draft document.
The draft would be discussed at full Planning Commission panel meeting on Thursday.
Presently, the FDI insurance sector is capped at 26 per cent, while it is at 51 per cent in single brand retailing.
In case of FM radio broadcasting, the government allows foreign investment up to 20
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per cent. The FDI cap in sectors like defence production and print and electronic media is 26 per cent.
Sectors like air transport, asset reconstruction firms and cable network are allowed FDI up to 49 per cent.
The sectors with comparatively higher FDI cap of 74 per cent are atomic minerals, private sector banking, telecom and establishment and operation of satellites at present.
Given the current scenario, the document says FDI could increase significantly during the 11th-plan period.
It also suggested that while containing the trade liberalisation, government should take steps to consolidate the gains from FDI by reducing delays in state level clearances.
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