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of <h1>India Allows 100% FDI via Automatic Route in Most Sectors; Guidelines in Press Notes 2, 3, 4 of 2009.</h1> The government has implemented a liberal policy on Foreign Direct Investment (FDI), allowing up to 100% FDI through the automatic route in most sectors. The FDI policy is continuously reviewed through inter-ministerial consultations. In February 2009, guidelines were issued regarding the calculation of total foreign investment, transfer of ownership in sectors with caps, and downstream investments by Indian companies. These guidelines were detailed in Press Notes 2, 3, and 4 of 2009. The policy is part of the Foreign Exchange Management Regulations, 2000, under the Foreign Exchange Management Act, 1999, which includes penalties for violations. This update was provided in a written reply in the Rajya Sabha.
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