FDI

FDI contributes efficiently to the overall growth of an economy, and India has gained from the massive FDI surge after the opening up of economy. The FDI surge has offered India a chance to improve its infrastructure to attract firms for setting up their businesses in a competitive business environment. Foreign firms have to stick to certain guidelines while investing through the FDI mode. FDI Policy has been devised to make the process of FDI more convenient:

FDI up to 100% is permitted under the automatic route in all activities/sectors, barring few where the approval of the Government:
The Policy allows FDI up to 100 % from foreign/NRI investors even not necessitating them for approval in the majority of the sectors, together with the services sector under automatic route.
Sectors/activities under automatic route do not call for any prior approval either by the Government or the RBI.

Liberalization of FDI
Apart from 100% respite of FDI in real estate, the government policies also present prospects to foreign investors to invest in diverse sectors through FDI mode. The areas where 100% FDI is allowed includes

Power trading
Processing,
Development of new airports,
Laying of natural gas pipelines,
Petroleum infrastructure and warehousing of coffee and rubber

Restrictions for telecoms services firms have been upped to 74% from the existing 49 per cent.
51% FDI can be made in the retailing industry in India in single brand outlet.