Foreign direct investment is investing by buying a company in another country or extending its operations in other country's.
More simply we can say Investing in another country for profit reasons. FDI in India has played an important role in developing our economy to a great extent.
There are 2 ways through which others can invest in India.
1.Automatic Route & 2.Govt Route
Automatic route:
Investment in these areas do not require prior approval either by the Government or RBI.
Govt Route:
FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance.
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
i) Retail Trading (except single brand product retailing)
ii) Atomic Energy
iii) Lottery Business
iv) Gambling and Betting
v) Business of Chit Fund
vi) Nidhi Company
vii) Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations)
viii) Housing and Real Estate business (except development of townships, construction of residential/commercial premises, roads or bridges to the extent specified by Govt.
ix) Trading in Transferable Development Rights (TDRs).
x ) Manufacture of cigars , cheroots, cigarillos and cigarettes , of tobacco or of tobacco substitutes.
More simply we can say Investing in another country for profit reasons. FDI in India has played an important role in developing our economy to a great extent.
There are 2 ways through which others can invest in India.
1.Automatic Route & 2.Govt Route
Automatic route:
Investment in these areas do not require prior approval either by the Government or RBI.
Govt Route:
FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance.
Sectors Prohibited for FDI in India:
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
i) Retail Trading (except single brand product retailing)
ii) Atomic Energy
iii) Lottery Business
iv) Gambling and Betting
v) Business of Chit Fund
vi) Nidhi Company
vii) Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations)
viii) Housing and Real Estate business (except development of townships, construction of residential/commercial premises, roads or bridges to the extent specified by Govt.
ix) Trading in Transferable Development Rights (TDRs).
x ) Manufacture of cigars , cheroots, cigarillos and cigarettes , of tobacco or of tobacco substitutes.
1 comment:
Thank you.
I need info. On
1.inflation
2.Karnataka agriculture, soil and crops.
3.summary of modern Indian history i.e, 1857revolt,Gandhi era,moderates and extremists, Indian National Congress.
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