<h1>Government Issues Press Notes to Clarify FDI Norms: Simplifies Calculations, Requires Approvals for Certain Sectors, Enhances Capital Inflows.</h1> The government issued Press Notes 2, 3, and 4 in February 2009 to clarify foreign direct investment (FDI) norms. Press Note 2 simplifies the calculation of indirect foreign investment, promoting investor-friendly regulations across sectors except where specific statutes apply, such as in insurance. Press Note 3 mandates government approval for foreign investments in sectors with caps, particularly when control shifts from Indian citizens to non-residents. Press Note 4 clarifies the need for approval in downstream investments by Indian companies, including in banking. These measures aim to enhance foreign capital inflows and provide regulatory clarity.