<h1>India's FDI Policy: Transparent, Liberal, with Automatic Route and FIPB for Investments Exceeding Sector Caps or Needing Licensing.</h1> India's Foreign Direct Investment (FDI) policy is among the most transparent and liberal in emerging economies, with few restrictions primarily in certain services sectors. FDI can occur through the Automatic Route, which requires no prior approval and is applicable where 100% foreign ownership is allowed or within sector caps. Alternatively, the Foreign Investment Promotion Board (FIPB) approves investments exceeding sector caps or in sectors needing industrial licensing. The FIPB provides a single-window approval process, typically within 30 days, and is used when policy clarity is lacking.