Question
For which of the following 100 % FDI is not allowed?
i. Activities / items that require an Industrial License ii. Setting up of Industrial Parks iii. Setting up Export Oriented Unit iv. Acquisition of shares in an existing Indian company by a foreign / NRI investorSolution
FDI up to 100% is allowed under the automatic route in all activities / sectors except the following which will require approval of the Government: 1.Activities / items that require an Industrial License; 2.Proposals in which the foreign collaborator has a previous / existing venture / tie up in India in the same or allied field 3.All proposals relating to acquisition of shares in an existing Indian company by a foreign / NRI investor. 4.All proposals falling outside notified sectoral policy / caps or under sectors in which FDI is not permitted. The policy permits FDI up to 100 % from foreign / NRI investor without prior approval in most of the sectors including the services sector under automatic route. FDI in sectors / activities under automatic route does not require any prior approval either by the Government or the RBI.
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