Foreign Direct Investment Consultant in India
Foreign investment in India is governed by the FDI policy formulated by the government of India for the provision of the Foreign Exchange Management Act(FEMA). The changes in foreign invement policies are made to pull down the barrier and increase the free flow of foreign capital and international trade. As per the policies and regulations foreign investment in India is facilitated by the FDI, FIIS(Directly, via the Portfolio Investment Scheme, PIS), NRI’s/persons of Indian origin, directly or indirectly via the PIS, inclusion of qualified investors, or by foreign Venture capital investors(FVCIs).
However, foreign investment approval policies prohibit FDI in the following unauthorized sectors:
- Betting and Gambling
- Private lottery and online lottery, including government lottery business
- Retail trading except single brand retailing
- Chit fund business
- Nidhi company
- Real state and farmhouse
- TDRS- Trading in transferable development rights
- Manufacturing of products like tobacco, cigars, cheroots, cigarillos, cigarettes, and other tobacco products.
- Some agriculture components
Furthermore, details of the sector permitted by the policies to acquire maximum foreign investment are highlighted below:
- Single-brand retail trading
- Multi-brand retail trading
- Infrastructure and construction development
- Telecom sector
- Reconstruction companies
- Investment in infrastructure companies in the stock market
- Investment in credit information companies
- Investment in commodity exchange
- Investment in public sector bank
- Investment in print media, news, and current affairs.