Sector Specific Guidelines for FDI

Sector Specific Guidelines for FDI in India has been issued for various sectors like tourism, townships, banking, and housing. Sector Specific Guidelines for FDI have been issued by the Indian government in order to increase the flow of foreign direct investment in the country.

Foreign direct investment in India:

The Indian government has recognized the importance of foreign direct investment as an important factor in the economic growth of the nation.This is the reason that the government of India has been making several efforts in order to increase the flow of foreign direct investment in the country from Overseas Corporate Bodies (OCBs) and also Non Resident Indians.

This will help to supplement as well as complement the domestic investment in India. Foreign direct investment in India is allowed freely in all sectors, except a small number of sectors, where specific guidelines do not allow foreign direct investment beyond a limit.

Various Sector Specific Guidelines for FDI:

Various Sector Specific Guidelines for FDI have been issued by the government of India. Specific guidelines pertaining to limits on FDI and other financial clauses are laid down by the Reserve Bank of India (RBI). The Indian government has issued Sector Specific Guidelines for FDI in order to encourage more and more FDI to come into the country. The various Sector Specific Guidelines for FDI in India for the banking sector are that foreign direct investment up to 20% is allowed in the sector and in the case of investment being made by Non Residential Indians (NRI) it is up to 40%. Further the Sector Specific Guidelines for FDI in India for the sectors of townships, built- up infrastructure, housing, and construction development projects is that foreign direct investment up to 100% is allowed in all the sectors.

Sector Specific Guidelines for FDI in India for the sector of hotels and tourism is that foreign direct investment up to 100% is allowed through the automatic route in the sector. Sector Specific Guidelines for FDI in India for the sector of trading is that foreign direct investment up to 100% is allowed in the sector.

Results of Sector Specific Guidelines for FDI in India:

The results of Sector Specific Guidelines for FDI in India has been that it has made it easy for the foreign investors to make investments in the different sectors of the country and this in its turn has led to huge inflows of foreign direct investment in India.

Last Updated on 05/08/2011