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<h1>India's New FDI Policy: Boosting Economic Growth via Transparent and Predictable Framework, Effective October 1, 2011.</h1> The amended Consolidated Foreign Direct Investment (FDI) Policy, effective from October 1, 2011, aims to attract and promote FDI to supplement domestic capital, technology, and skills for economic growth in India. The policy framework is transparent and predictable, updated biannually to reflect regulatory changes. The Department of Industrial Policy and Promotion (DIPP) issues policy pronouncements, which are notified by the Reserve Bank of India (RBI) as amendments to the Foreign Exchange Management Act (FEMA) regulations. The policy subsumes previous guidelines and is effective from October 1, 2011. It outlines definitions, general conditions, and specific sectoral caps and conditions for FDI in various sectors, including agriculture, mining, petroleum, manufacturing, defense, services, and financial sectors. The policy also details the procedures for investment, types of instruments, and guidelines for calculation of foreign investment. Compliance with the policy is mandatory, with penalties for violations.