The government has decided to relax the rules for foreign direct investment (FDI) in the country by permitting the issuance of equity to overseas firms against imported capital goods and machinery. An official statement said the norms for overseas investment in production and developments of seeds have been also liberalised. AIR correspondent reports, the measure, which liberalises the conditions for conversion of non-cash items into equity, is expected to significantly boost the prospects for foreign companies doing business in India. FDI will now be permitted in the development and production of seeds and planting material. The government made these changes in the third edition of the Consolidated FDI Policy Circular, a ready reckoner on foreign investment-related regulations that was released in New Delhi on Thursday. Commerce and Industry Minister Anand Sharma said third edition of the Consolidated FDI Policy is a part of ongoing efforts of procedure simplification and FDI rationalisation, which will go a long way in inspiring investor confidence. The government has further decided to abolish the condition of prior approval in case of existing joint ventures and technical collaborations in the same field.