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of <h1>India's 2016 FDI Policy: Boosting Economic Growth with Clear Guidelines on Investment, Entry Routes, and Compliance Penalties.</h1> The Consolidated FDI Policy Circular of 2016, effective from June 7, 2016, aims to attract and promote foreign direct investment (FDI) in India to supplement domestic capital, technology, and skills for accelerated economic growth. The policy framework is transparent, predictable, and comprehensible, updated annually to reflect regulatory changes. It distinguishes FDI from portfolio investment by emphasizing a 'lasting interest' in enterprises. The circular supersedes previous guidelines and includes definitions and conditions for FDI in various sectors, entry routes, caps, and procedural instructions. It also outlines reporting requirements, remittance guidelines, and penalties for non-compliance.
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