Until very recently proposals for foreign direct investment in India triggered the requirement to seek prior Government approval depending on the sector in which the investment was proposed to be made. The list of these “approval route” sectors was progressively liberalized and as a result the requirement to seek prior Government approval for any foreign investment was triggered only in case of a handful of sensitive sectors. There were only a couple of exceptions to this general rule, which required foreign direct investment coming from Pakistan and Bangladesh to be subject to prior Government approval.
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