The question asks about the common routes for Foreign Direct Investment (FDI) in India. Understanding the regulatory framework for FDI is crucial for answering this question.
Correct Option: A) Two. The two common routes for Foreign Direct Investment in India are the Automatic Route and the Government Route.
The question asks about the requirements for foreign direct investment (FDI) under the 'automatic route' in India. Understanding the two main routes for FDI – automatic and approval – is key to answering this question.
A) No prior permission from RBI or the Government of India
This option correctly describes the automatic route for FDI, where investments can be made without seeking prior approval from either the RBI or the Government of India. A post-facto intimation to RBI is generally required.
The question asks about the procedure for receiving investment under the government route of Foreign Direct Investment (FDI) in India. Understanding the two main routes for FDI (Automatic and Government) is key to answering this question.
C) Prior permission/approval from the Government of India — This is the defining characteristic of the Government Route for FDI. Investment under this route can only be received after obtaining the necessary approvals from the relevant government authorities.
The question asks about the specific portal through which companies apply for Foreign Direct Investment (FDI) via the government route in India. This requires knowledge of the regulatory framework for FDI in India.
C) Foreign Investment Facilitation Portal (FIFP) is the correct answer. Companies seeking FDI through the government route in India must submit their applications through the Foreign Investment Facilitation Portal (FIFP). This portal was launched after the abolition of the Foreign Investment Promotion Board (FIPB) in 2017 to streamline the FDI approval process.
The question asks to identify the sector that permits 100% Foreign Direct Investment (FDI) through the automatic route in India. This requires knowledge of India's FDI policy, specifically which sectors are open to 100% FDI under the automatic route and which are restricted or prohibited.
Correct Option: C) Agriculture and animal husbandry. Many activities in the agriculture and animal husbandry sector (excluding certain specific activities like plantations, which have caps, or prohibited activities) are open to 100% FDI under the automatic route. This policy aims to attract foreign investment for infrastructure development, technology transfer, and value addition in the agricultural sector.
The question asks to identify a sector where Foreign Direct Investment (FDI) is prohibited in India. This requires knowledge of India's FDI policy, specifically the list of prohibited sectors.
C) Gambling and Betting including casinos: The Government of India explicitly prohibits Foreign Direct Investment (FDI) in certain sectors. Gambling and betting, including casinos, are consistently listed among these prohibited sectors due to social and regulatory concerns. Therefore, this is the correct answer.