<h1>Government Raises FDI Caps in Defense, Insurance to 49%; Eases Rules for Smart Cities and Retail Sales.</h1> The government has revised its Foreign Direct Investment (FDI) policy to enhance investment in key sectors. The FDI cap in defense manufacturing is increased from 26% to 49%, while the insurance sector cap is also proposed to rise to 49%. For smart city projects, the built-up area requirement is reduced from 50,000 to 20,000 square meters, and capital conditions from USD 10 million to USD 5 million. Manufacturing units can now sell products through retail, including e-commerce, without additional approval. These changes aim to boost domestic manufacturing and job creation, with significant FDI inflows recorded from 2011 to 2014.