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Frequently Asked Question
EU FDI into India: (1) Most sectors are under the automatic route — no prior government approval needed (IT, manufacturing, retail single-brand, pharma greenfield, renewable energy), (2) Some sectors under government route — prior FIPB/Ministry approval needed (defence, telecom, financial services above certain thresholds), (3) Prohibited sectors: gambling, lottery, tobacco manufacturing, (4) Investment vehicle: EU company typically sets up a Wholly Owned Subsidiary (WOS) in India (Private Limited Company) under Companies Act 2013, (5) Investment remittance via RBI FEMA regulations, (6) India-EU FTA when concluded will provide enhanced EU investor protection (ICS — Investment Court System).
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