<h1>India Regulates Foreign Investments with FDI Policy and FEMA; Some Sectors Require Approval, Others Open Automatically.</h1> The activities of multinational and foreign companies in India are regulated by the FDI policy outlined in the Consolidated FDI Policy Circular 2015 and the Foreign Exchange Management Act (FEMA), 1999. To protect domestic and traditional industries, certain sectors are restricted from foreign ownership and control, while others require government approval for investment. Some sectors have performance-linked conditions for foreign direct investment. While the policy safeguards local industries, it also facilitates foreign investment by keeping most sectors open under the automatic route, enabling Indian businesses to access foreign capital for growth. This information was provided by a government official in a Lok Sabha session.