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Foreign direct investment Policy in India

 
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PostPosted: Fri 11:25, 19 Apr 2013    Post subject: Foreign direct investment Policy in India

A foreign company can invest in an Indian company through a joint venture agreement or as a wholly owned subsidiary in the areas which are otherwise not reserved exclusively for the public sector or which are not under the prohibited categories. Foreign investment into India is governed by the Foreign Direct Investment (FDI) Policy and the Foreign Exchange Management Act, 1999 (FEMA).

Sectors in which FDI is prohibited

As per the latest FDI Policy, FDI is prohibited in the following activities/sectors:

Retail Trading (except single brand product retailing)
Lottery Business including Government /private lottery, online lotteries,etc.
Gambling and Betting including casinos etc.
Business of chit fund
Nidhi company
Trading in Transferable Development Rights (TDRs)
Real Estate Business or Construction of Farm Houses
Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
Activities / sectors not opened to private sector investment including Atomic Energy and Railway Transport. read more...

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