The Finance Ministry has proposed sweeping changes in the Foreign Direct Investment, FDI, regime to promote India as an attractive investment destination.

A committee headed by Economic Affairs Secretary Arvind Mayaram has favoured higher sectoral caps in almost all sectors including defence, multi-brand retail and telecom.

The Committee, suggested that FDI in defence be raised to 49 per cent from 26 per cent at present.

It has also proposed to increase FDI cap to 74 per cent in the multi-brand retail trading and 49 per cent in single-brand retail.

In the civil aviation sector and courier services the committee suggested 100 per cent FDI.

The Committee, submitted its report to the Finance Minister yesterday.