Consolidated FDI Policy sets routes, sectoral caps, reporting rules and penalties for foreign investments in India. The Consolidated FDI Policy (effective 1 April 2010) consolidates FEMA/RBI/DIPP rules into a unified framework defining FDI, entry routes (Automatic and Government), calculation of direct and indirect foreign investment (including downstream investments and ownership/control tests), sectoral prohibitions and caps, permitted instruments and pricing norms, transfer and reporting requirements (FC-GPR, FC-TRS, DR returns, KYC) through AD Category-I banks, and enforcement mechanisms under FEMA including penalties, adjudication and compounding.