1435. Classification of Sectors for FDI Purpose
Arinjay Jain Academy
2015-07-10
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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
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
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