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  • Foreigners can directly invest in India either on their own or as a joint venture, with a few exceptions with regard to investment limits and sectors.
  • No government approval is required for FDI in virtually all sectors except a small negative list formulated by government. Sector specific guidelines are formulated by government giving sectoral investment caps if any.
  • If an investment does not qualify for automatic approval, FIPB considers the proposal.
  • Use of foreign brands names/trademarks is permitted for sales in India.
  • Indian capital markets are open to FII’s and Indian companies are allowed to raise funds from international capital markets
  • Foreign technology collaborations are allowed with agreements on
  • Technical knowhow fees
  • Payment for designs and drawings
  • Payment for engineering services
  • Other royalty payments

- NRI’s can invest in shares and or convertible debentures of Indian companies on a non-repatriable basis and these investments are not considered as FDI