Question

From the beginning of 2018 which of these sectors has been allowed for automatic hundred per cent foreign direct investment (FDI) in India?

• A. Multi Brand Retailing
• B. Defence Manufacturing
• C. Banking
• D. Single Brand Retailing

Answer 1

The Correct Option is D

In the context of Foreign Direct Investment (FDI) policies in India, particularly since the beginning of 2018, it is important to understand which sectors have been opened up for automatic 100% FDI. The option that aligns with these criteria is Single Brand Retailing.

To elaborate:

• Multi Brand Retailing: This sector is not allowed for 100% FDI under the automatic route. It is subject to various conditions and governmental approvals.
• Defence Manufacturing: Although FDI is allowed, it's not at the automatic 100% level for this sector. Specific conditions and caps are applied depending on the project and technology transfers.
• Banking: The banking sector in India has its regulations regarding foreign investment, but 100% FDI is not automatically allowed.
• Single Brand Retailing: As per modifications made in the FDI policy, 100% FDI under the automatic route is permitted for single brand retail trading.

Thus, with the policy changes effective since the beginning of 2018, the sector permitted for automatic 100% FDI is Single Brand Retailing.