The union cabinet is set to meet on Wednesday and sources have told CNBC-TV18 that foreign direct investment (FDI) reform proposals will be on the agenda. If approved, the FDI reforms will be the second set of economic measures announced by the government in less than a week.

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The government had announced its intent to relax FDI norms on several sectors recently. While presenting the budget in July, Finance Minister Nirmala Sitharaman had said that the government intends to carry out FDI reforms in aviation as well as multimedia sectors like animation and gaming.

Sitharaman had also committed to easing sourcing norms on single brand retail and allowing 100 percent FDI for insurance intermediaries.

Last but not the least Sitharaman had announced that foreign portfolio investment (FPIs) will be permitted to subscribe to listed debt securities issued by ReITs and InvITs.

Sources also indicated that government may also clarify on allowing 100 percent FDI in contract manufacturing.