India eases restrictions on foreign investment to spur growth

India on Tuesday eased foreign investment rules across various industries in a move aimed at arresting flagging growth in Asia's third-largest economy, dpa reported. The reforms affect the telecom, insurance, defence and retail sectors, the government said. Premier Manmohan Singh approved plans to allow 100 per cent foreign equity in the telecom sector, up from an existing 74 percent, Commerce Minister Anand Sharma said. The move was expected to bring inflows of 10 billion dollars into the industry, local media estimated. Foreign investment in the insurance sector was increased to 49 percent from the 26 per cent at present, the minister said. The government also cleared foreign investment beyond the existing ceiling of 26 per cent in the defence production sector on the condition that it helps India acquire state-of-the-art technology. Other measures included faster clearances for foreign equity in sectors like petroleum and single-brand retail.