The note issued in 1998, requires foreign companies with existing joint ventures in India to obtain a no-objection certificate from their partners before setting up a new venture.

Nath said he hoped to seek the Cabinet's approval to the changes in the Note shortly. "The Note has two parts -- one which looks at existing ventures and the other at the future ones. These two would be looked at differently. We want to do what is in the best interests of our businessmen while also ensuring that we are not unfair to foreign investors," he said.

Government officials said Nath had already sent the proposed changes, diluting the present norms in the Press Note to the Prime Minister's Office (PMO). A final view would be taken after consultations with the PMO, an official said.

The move to dilute the norms of the note is already garnering support from industry. "Press note 18 should be diluted," Rahul Bajaj, chairman, Bajaj Auto told Business Standard.

"In case a foreign partner wants to enter the same line of business as its joint venture with Indian partners there should be a sunset clause for three years for existing JVs," he said, adding that in case of a different line of business there was no need to take permission from the Indian partner.

Nath also said the government was seriously considering allowing retail trade, which does did not adversely impact employment and subsistence of mom-and-pop shops.

"The government is going to be flexible in product retail and will announce a policy shortly," Nath said, addressing the India Economic Summit. Currently, foreign direct investment is not allowed in the retail sector.

The minister pointed out that the opening up of product retail was in sync with the United Progressive Alliance's Common Minimum Programme, which had stated the government would support measures, which generated greater economic activity and employment.

The new FDI norms in retail are expected to come with sufficient safeguards to protect the smaller players in the unorganised retail market, which constitutes roughly 98 per cent of the total retail market.

Interestingly, the NK Singh Committee, set up under the previous regime, had favoured continuing the present policy of banning FDI in retail.

Kamal Nath also said he would, within the next few days, take the proposed patent amendment for introducing a product patent before the cabinet.

"We intend to table the Bill in the current session of Parliament," he said, adding that the government would hold discussions with the Left to mitigate its concerns on the proposed amendments.