India’s cabinet has approved plans to open its defence and railways industries to foreign investment as new Prime Minister Narendra Modi’s right-wing administration moves to reform and revive the ailing economy. the cabinet agreed late Wednesday to increase the limit on foreign direct investment in defence to 49 percent from 26 percent, and allow unlimited investment in railway infrastructure, officials said.
Railway Minister Sadananda Gowda said Thursday that foreigners would still be barred from investing in railway operations, amid uproar in parliament over the measures.