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DAILY NEWS ANALYSIS
05 April, 2021
3 Min Read
FDI Routes in India
There are three routes through which FDI flows into India. They are described in the following table:
Category 1 |
Category 2 |
Category 3 |
100% FDI permitted through Automatic Route |
Up to 100% FDI permitted through Government Route |
Up to 100% FDI permitted through Automatic + Government Route |
Automatic Route FDI
In the automatic route, the foreign entity does not require the prior approval of the government or the RBI
Examples:
Government Route FDI
Under the government route, the foreign entity should compulsorily take the approval of the government. It should file an application through the Foreign Investment Facilitation Portal, which facilitates single-window clearance. This application is then forwarded to the respective ministry or department, which then approves or rejects the application after consultation with the DPIIT
Examples:
Sectors where FDI is prohibited
There are some sectors where any FDI is completely prohibited. They are:
Source: PIB
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