<h1>India's FDI Restrictions: No Investments in Retail Trading, Real Estate, Tobacco, and More Under Companies Act, 1956.</h1> As of May 2012, India had 3,196 foreign companies registered under the Companies Act, 1956. Foreign Direct Investment (FDI) is prohibited in several sectors, including retail trading (except single-brand retail), lottery, gambling, chit funds, real estate, and tobacco manufacturing. Additionally, private sector investments are restricted in atomic energy and certain railway transport areas. Despite the presence of multinational companies, data on the closure of small, medium, and cottage industries is unavailable, though 496,000 Micro, Small, and Medium Enterprises (MSMEs) have closed due to various issues such as credit, marketing, and competition. This was reported by the Minister of State for Commerce and Industry in the Rajya Sabha.