Foreign Direct Investment.
(a) No Approval Required:
FDI is allowed on an "automatic" basis in all but a small number of specified industries or circumstances of the investor that entail obtaining of specific permission. The following are some of the main situations that required obtaining specific permission:
(1) Proposal for industries not covered by the "automatic route", i.e industries that have been specified as required approval.
(2) Proposal for industries where the investment exceeds the foreign ownership caps mandated.
(3) Proposals where the foreign investor has an existing investment in the same industry.
(4) Investments in public sector undertakings.
(5) Procedure When Approval Required:
Seeking approval starts with the submission of an application to the Foreig Investment Promotion Board (FIPB), which is empowered to review each proposal for investment independent of established parameters and procedures. This application may be submitted to through the overseas diplomatic missions in order to speed up the process.
The recommendations of the FIPB are made to two different entities depending on the amount of the proposed investment. For investments of less than US $150 million, they are considered and approved by the Finance Minister. Those in excess of US $150 million are sent to the Cabinet Committee on Economic Affairs.