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Report: India seeks further relaxation of foreign investment limits

India's Finance Ministry aims to further relax foreign direct investment rules in the insurance, aviation and railway sectors in a bid to raise FDI to 6% of GDP from less than 2% currently, Bloomberg News reported, citing sources familiar with the matter.

The ministry is proposing to raise the FDI limit in insurance and pension enterprises to 74% from 49%, and allow foreign ownership of local airlines, according to the report. It has also suggested permitting 100% foreign investment in companies in the railway, education and rental housing management sectors, the report added.

The proposal follows the easing of foreign investment rules in the retail, manufacturing and coal mining sectors in 2019.