The Law
is based on Consolidated FDI Policy Circular No.1 of 2012
1. Permitted Sectors – Investment in Permitted Sectors can be made under the following two
routes : -
a. Automatic Route
No prior
approval required from the
RBI or the GOI. Only
Reserve Bank of India needs to be informed within specified
period.
b. Government Approval Route (‘FIPB’)
Proposals falling outside the prohibited Sectors and not falling under
automatic route require prior approval of Foreign Investment Promotion Board
(‘FIPB’)
2.
Prohibited Sectors
Foreign investment is not permitted in companies
engaged in prohibited sectors –
Refer Para 6.1 of the Policy.
