Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities including investments from Non-Resident Indians (NRIs). Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to making it more investor friendly, including for NRIs.

The extant FDI policy allows special dispensation for NRI investments in the constructiondevelopment sector and Civil Aviation sector. Further, the investments made by NRIs, PIOs and OCIs and companies owned by such NRIs, PIOs and OCIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations on non-repatriation basis are deemed to be domestic investment at par with the investment made by residents.

Government of India has put in place a liberal and investor friendly FDI policy. FDI inflows depend on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

Foreign direct investment automatic route permits broad NRI participation, with certain investments treated as domestic under FEMA. The Government permits wide Foreign Direct Investment under the automatic route, including NRI investments, with special dispensations for construction development and civil aviation; investments by NRIs, PIOs and OCIs made under Schedule 4 of FEMA on a non repatriation basis are deemed domestic and treated at par with resident investments.