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of <h1>India's 2012 FDI Policy: Transparent Framework for Attracting Investments, Detailing Sectoral Caps, Entry Routes, and Compliance Requirements.</h1> The Consolidated Foreign Direct Investment (FDI) Policy of India, effective from April 10, 2012, aims to attract and promote FDI to supplement domestic capital, technology, and skills, fostering economic growth. The policy framework is designed to be transparent, predictable, and comprehensible, with annual updates to reflect regulatory changes. The policy covers definitions, general conditions, and sector-specific guidelines for FDI, detailing the entities eligible for investment, types of instruments, and procedures for issuing and transferring shares. It specifies sectoral caps, entry routes, and conditions for foreign investments, emphasizing compliance with relevant laws and regulations. The policy also outlines reporting requirements and penalties for non-compliance, ensuring adherence to the Foreign Exchange Management Act (FEMA) and related regulations.
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