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ARTICLE · 08 SEPTEMBER 2015

Composite Caps For The Sectors Introduced Under FDI Policy

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With the view to attract foreign investments in India, the Government of India has introduced composite caps resulting in uniformity and simplicity across the sectors in the Foreign Direct Investment (FDI) Policy.

IndiaGovernment, Public Sector
S&A Law Offices
S&A Law Offices
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INTRODUCTION

With the view to attract foreign investments in India, the Government of India has introduced composite caps resulting in uniformity and simplicity across the sectors in the Foreign Direct Investment (FDI) Policy. The Ministry of Commerce & Industry, Department of Industrial Policy & Promotion, through the Press Note No. 8 (2015 Series), dated July 30, 2015, made certain amendments in the Consolidated FDI Policy of 2015.

Before the amendments in the Consolidated FDI Policy Circular of 2015, these sectors had sub-limits within an overall cap. Different categories of caps lead to a situation where the person who is investing and the person receiving the investment got confused and had to be more careful that he did not exceed the limit. So, it lead to a lot of layered due diligence to be maintained. In order to treat all foreign investment with the same kind of parity and bring about clear understanding among investors, the composite caps have been

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