Some key excerpts from
 http://www.timesofindia.com/today/10home1.htm

Defence sector opened to pvt players

The Times of India News Service

NEW DELHI: The Union government on Wednesday
dramatically responded to the Armsgate scandal,
which revealed the rot in the country's defence
procurement mechanism, by opening up the Indian
defence industry to the private sector. While the
defence industry has been opened to 100 per cent
Indian private investment, it has also allowed a
26 per cent foreign participation in private arms
manufacturing ventures. ...

With the new announcement, Indian companies can
apply for licences from the defence ministry to
produce arms. Mahajan explained that those Indian
companies requiring technology from foreign
companies might need to give stakes in their
companies, and hence a foreign direct investment
of 26 per cent has been allowed. ...

The Cabinet also threw open many vital sectors
like civil aviation, pharmaceuticals, real estate,
mass rapid transport system (MRTS) and hotel and
tourism to 100 per cent foreign direct
investment, and considerably raised the foreign
investment levels in telecom and banking.

According to the Cabinet decision, there could be
foreign rail companies running MRTS in every
Indian metro; 100 per cent FDI in MRTS is by an
automatic route, which means it does not even
require licensing or the approval of Foreign
Investment Promotion Board. ...

Hotel and tourism is another sector which has been
allowed 100 per cent FDI (it was only 51 per cent)
on an automatic route. As also 100 per cent FDI in
courier services, drugs and pharma sector. The FDI
in airports has been raised from 74 per cent to
100 per cent, but the promoters have to go via the
FIPB. ...

The FDI ceiling of 49 per cent in the telecom
sector for Internet Service Providers with
gateways, radio paging and end-to-end bandwidth
has been raised to 74 per cent. ...

Banking was one sector where the FDI was
restricted at 20 per cent (with 40 per cent for
NRIs). With the Cabinet decision, the FDI from all
sources can go up to 49 per cent, subject to the
Reserve Bank of India regulations.