Foreign Direct Investment: Prohibited Sectors

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Questions and Answers

FDI is prohibited in Atomic Energy Generation.

True (A)

FDI is prohibited in any gambling or betting businesses.

True (A)

FDI is prohibited in lotteries (online, private, government, etc.).

True (A)

FDI is prohibited in investment in chit funds.

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FDI is prohibited in Nidhi Company.

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FDI is prohibited in agricultural or plantation activities.

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FDI is prohibited in housing and real estate.

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FDI is prohibited in trading in TDR's.

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FDI is prohibited in cigars, cigarettes, or any related tobacco industry.

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Flashcards

Atomic Energy Generation

FDI is prohibited in the generation of atomic energy.

Gambling and Betting

FDI is prohibited in any gambling or betting businesses.

Investment in Chit Funds

FDI is prohibited in investment in chit funds.

Nidhi Company

FDI is prohibited in Nidhi Company.

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Agricultural/Plantation Activities

FDI is generally prohibited in agricultural or plantation activities, although there are many exceptions like horticulture, fisheries, tea plantations, pisciculture, animal husbandry.

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Housing and Real Estate

FDI is restricted in housing and real estate, excluding townships, commercial projects, etc.

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Trading in TDR's

FDI is banned in trading in Transferable Development Rights.

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Tobacco Industry

FDI is not allowed in the production of cigars, cigarettes, or any related tobacco industry.

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Study Notes

FDI is prohibited in certain sectors.
Atomic energy generation is one such sector.
Gambling and betting businesses are also prohibited for FDI.
Any kind of lotteries are prohibited like online, private and government.
FDI is not allowed for investment in Chit Funds.
Nidhi companies are also under the prohibition list.
Most agricultural or plantation activities do not allow FDI, however, there are exceptions for horticulture, fisheries, tea plantations, pisciculture, and animal husbandry.
Housing and real estate also do not allow FDI with the exception of townships and commercial projects.
Trading in TDR’s is not allowed.
FDI is prohibited in the cigars, cigarettes, or any related tobacco industry.