Foreign direct investment in India can occur through the automatic route or government route. The automatic route allows foreign investment in most sectors without prior approval, while investment in restricted sectors requires government approval. Foreign investors permitted in India include non-resident entities from all countries except Pakistan and Bangladesh, whose citizens can only invest through the government route. Non-resident Indians and people of Indian origin residing abroad can also invest in India. Foreign portfolio investment is allowed through foreign institutional investors registered with India's market regulator SEBI.

1. Indian Economy – 2014

4. GDP & PCI In India

13. New Series (CPI-NS) – Base Year 2010

23. Foreign Direct Investment
According to IMF, FDI (foreign direct investment) can be defined as
“investment that is made to acquire a long-term interest in an
enterprise operating in an economy other than that of investor, the
investor’s purpose being to have effective voice in the
management of the enterprise”

24. Routes of Foreign Direct Investment
Automatic Route
FDI is allowed under the automatic route without prior
approval either of the Government or the Reserve Bank of
India in all activities/sectors as specified in the consolidated
FDI Policy, issued by the Government of India from time to
time.
Government Route
FDI in activities not covered under the automatic route
requires prior approval of the Government which are
considered by the Foreign Investment Promotion Board
(FIPB), Department of Economic Affairs, Ministry of Finance.

25. WHO CAN INVEST IN INDIA?
• A non-resident entity (other than a citizen of Pakistan or
an entity incorporated in Pakistan) can invest in India,
subject to the FDI Policy. A citizen of Bangladesh or an
entity incorporated in Bangladesh can invest only under
the Government route.
• NRIs resident in Nepal and Bhutan as well as citizens of
Nepal and Bhutan are permitted to invest in the capital of
Indian companies
• A Non-Resident Indian (NRI) or a Person of Indian Origin
(PIO) resident outside India can invest in the capital of a
firm or a proprietary concern in India

26. Foreign Portfolio Investment by FIIs
• This Investment allowed to FIIS registered with SEBI
• All transactions are regulated under SEBI (FII)
Regulations, 1995 and Regulation 5(2) of FEMA
FIIs includes:
1. Asset Management Companies,
2. Pension Funds & Mutual Funds,
3. Investment Trusts as Nominee Companies,
4. Institutional Portfolio Managers ,
5. University Funds,
6. Charitable Trusts and Charitable Societies

31. Agriculture Credit

39. Industry

42. Trends in India’s Foreign Trade