Paper I · 5 Indian Economy & Development · 5.4.1 External sector

5.4.1.4 Foreign investment: FEMA, FDI, FPI and instruments (ADR, GDR, masala bonds, P-notes)

Foreign investment in India comes as FDI (lasting stake and control) or FPI (financial holdings, below 10%), is governed by FEMA, 1999, and flows through the automatic route or the government approval route.

  • TGPSC MPSO / ASO · Paper I
  • Standard level
  • 7 min read
  • Full course

Key terms

  • FDI
  • FPI
  • FEMA
  • automatic route
  • government route
  • ADR
  • GDR
  • FCCB
  • masala bond
  • participatory notes
  • Press Note 3
  • Foreign Investment Facilitation Portal
  • 10 per cent

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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