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of <h1>India Raises FDI Cap in Defense and Insurance to 49%, Eases Rules for Smart Cities and Manufacturing Sectors.</h1> The government has announced measures to boost Foreign Direct Investment (FDI) in key sectors to benefit the Indian economy. The FDI cap in defense manufacturing and insurance is increased to 49% from 26%, maintaining full Indian management and control via the FIPB route. To support Smart City development, the built-up area and capital requirements for FDI are reduced significantly, with incentives for projects focusing on affordable housing. Additionally, manufacturing units can now sell products via retail and e-commerce without extra approvals, as FDI in manufacturing is on the automatic route.
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