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<h1>FDI policy continuously liberalised to permit higher automatic route investment, raise sectoral caps, and ease tax/GST compliance.</h1> India's FDI policy adopts a negative list approach allowing up to 100% foreign investment via the Automatic Route subject to laws and security conditions, with recent liberalisation raising sectoral caps (defence, insurance, telecom) and expanding automatic route access; these measures are supported by regulatory simplification, tax and GST reforms, investment facilitation through Invest India, and targeted incentives (SEZs, STPIs, Fund of Funds, PLI schemes) to attract investment in software, services and manufacturing.