Foreign investment in India is governed by the Foreign Exchange Management Act (FEMA) and the FDI policy created by the Indian government. Lowering the barrier and promoting the free flow of foreign capital and international trade are the objectives of the changes to the laws governing foreign investment. As per the laws and regulations, foreign investment in India can be facilitated by FDI, qualified investors, foreign venture capital investors (FVCIs), NRIs (people of Indian origin), or FIIS (directly or indirectly through the Portfolio Investment Scheme, or PIS).
Foreign investment approval policies forbid the following unapproved sectors:
Online gambling and betting
private lotteries, and the government lottery sector
Sales at retail, excluding sales under a single brand
Chit fund for businesses Nidhi Company
Cigarettes, cigars, cheroots, cigarillos, and other tobacco products are produced at farmhouses and actual state Transferable Development Rights Trading (TDRS) facilities.
A few aspects of farming
Furthermore, foreign investment in India is feasible through both direct and indirect means.
An investment made directly by a non-resident entity in an Indian enterprise is known as a direct foreign investment. The total amount is considered a foreign investment when calculating a company's total investment.
Indirect foreign investment is the total amount of an investment made by companies that are run or controlled by non-resident entities.
