Multiple choice

In which of the following activities is the Foreign Direct Investment in India not allowed?

  1. Real estate business
  2. Rubber plantation
  3. Manufacturing of cigarette
  4. Business of chit fund
  5. Nidhi company

  1. Only 2

  2. 2, 4 and 5

  3. Only 5

  4. 1, 2, 3, 4 and 5
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

FDI in India is prohibited in the following areas:

  • Business of chit fund
  • Nidhi company (a non-banking finance company)
  • Real estate business (business dealing in land and immovable property with a view of earning profit or earning income there from and does not include development of townships, construction of residential/commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships) or construction of farm houses
  • Trading in Transferable Development Rights (TDRs)
  • Retail Trading (except single brand product retailing)
  • Atomic Energy
  • Lottery business including government/private lottery, online lotteries, etc.
  • Gambling and betting including casinos, etc.
  • Activities/sectors not opened to private sector investment
  • Agriculture (excluding floriculture, horticulture, development of seeds, animal husbandry, pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and plantations (other than tea plantations)
  • Manufacturing of cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes, though distribution is allowed
Partnership firms/proprietorship concerns having investments as per FEMA regulations are not allowed to engage in print media sector.

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