All foreign investments are subject to RBI regulations. Some sectors are allowed under automatic approval route, which means no need of any approval from RBI. Whereas some sectors their is restriction to a certain percentage of share, like 50 percent only foreign investment, in all such cases they need ti tie up with locals. Whereas there are some areas completely not allowed to invest by foreigners. Ex: real estate., FDI is prohibited in Real estate sector.
As per Wiki:
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
However, investment in the following activities is allowed 100% under automatic route.
- Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions;
- Development and production of Seeds and planting material;
- Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and
- Services related to agro and allied sectors.
Please check RBI regulations on FDI for right source.
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