Foreign Direct Investment (FDI)

Country

Sector

Automatic

All Routes

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Autocomponents

100%

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Automobiles

100%

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Air Transport Services
(non-scheduled and other
services under civil
aviation sector)

100%

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Biotechnology (Greenfield)

100%

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Capital Goods

100%

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Chemicals

100%

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Construction Development: Townships,
Housing, Built-up Infrastructure

100%

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Defence

100%

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Electronic Systems

100%

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Food Processing

100%

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Gems & Jewellery (Manufacturing)

100%

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Construction of Hospitals

100%

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IT and BPM

100%

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Leather

100%

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Broadcasting Carriage Services

100%

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Medical Devices

100%

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Coal & Lignite

100%

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Petroleum & Natural Gas

100%

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Pharmaceuticals (Greenfield)

100%

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Ports and Shipping

100%

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Railway Infrastructure

100%

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Renewable Energy

100%

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Duty Free Shops

100%

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Roads & Highways

100%

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Telecom Services

100%

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Textiles & Garments

100%

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Thermal Power

100%

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Tourism & Hospitalityr

100%

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PROHIBITED SECTORS

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Lottery Business including
Government/private lottery,
online lotteries, etc.*

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Gambling and Betting
includingcasinos*

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Chit Funds

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Nidhi Company

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Trading in Transferable
Development Rights (TDR)

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Real Estate Business or
Construction of farm
houses**

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Manufacturing of cigars,
cheroots, cigarillos and
cigarettes, of tobacco or of
tobacco substitutes

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Sectors not open to private
sector
investment- atomic energy,
railway operations

*Foreign technology collaboration in any form including licensing for franchise,
trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities

**Real estate business shall not include development of town shops,construction of residential/ commercial premises, roads or bridges and Real Estate Investment Trusts (REITs)
registered and regulated under the SEBI (REITs) Regulations, 2014

Document Requirment for FDI

Before FDI receipt of Funds

Step -1 Online application portal for the entity master form ( the RBI introduced an online portal called the
Foreign Investment Reporting and Management System ("FIRMS"), under which every Indian entity,
with existing direct or indirect foreign investment, was required to provide certain
information to the RBI in the entity master form (the "EMF"), through the website of FIRMS)
Basically it is Initial registration for an Entity.

Step -2 KYC of Foreign remitter with Funds
In swift message for Funds, Field 72 must mention---Share capital or Capital
Infusion or Purchase of Share capital etc

KYC must contain 6 points

Know Your Customer (KYC) Form in respect of the non-resident investor

  • 1. Registered Name of the Remitter / Investor (Name, if the investor is an Individual)
  • 2. Registration Number (Unique Identification Number* in case remitter is an Individual)
  • 3. Registered Address (Permanent Address if remitter Individual)
  • 4. Name of the Remitter’s Bank
  • 5. Remitter’s Bank Account No.
  • 6. Period of banking relationship with the remitter
During receipt of FDI and Before crediting into the Account
  • 1. Bank format signed stamped by the customer on each page ( letterhead of the company).
  • 2. Brief profile on letterhead of investee company providing main business activities of the entity with 5 digit NIC code as per NIC 2008 list.
  • 3. Copy of share holder agreement if any or declaration that there is no such agreement.
  • 4. KYC swift of the remitter/investor ( If remittance is received from a joint account then Kyc of both the account holders is required).
  • 5. NOC from joint account holder if shares are being issued on single name (applicable for remittances received from joint accounts only).
  • 6. copy of MOA
  • 7. Declaration that the investor is not an overseas corporate body(OCB)--- (applicable if remittance is received from other than an individual).
  • 8. Obtain undertaking from the customer stating capital instruments will be issued within 60 days from date of receipt of funds as per Notification No. FEMA 20(R)/ 2017-RB dated November 07, 2017
  • 9. scan acknowledgement received by the investee company from FIRMS w.r.t. entity master updation as specified in A. P. Dir. Series Circular No. 30 dated June 07, 2018 or provide snapshot showing name of the company registered in FIRMS portal.
  • 10. Copy of concerned ministry/FIPB approval (if investment is under government route).
After receipt of FDI -FCGPR (Share allotment and Reporting)
  • 1. Allot Shares with in 60 days from date of credit in Account
  • 2. Submit FCGPR online within 30 days from Date of Allotment with supporting documents (Filing forms in SMF-FIRMS application )
  • Note: Advance Remittance Form ("ARF") and Form FC-GPR, has now been merged into a single Form FC-GPR

India In A Minute

Gems & Jewellery
  • Automobile
  • Aviation
  • Capital Goods
  • Oil & Gas
  • Leather
  • Ports & Shipping
  • IT & BPM
  • Media
  • Railways
  • Construction


Vehicles produced

every minute



201964 vehicles



2020162 vehicles



Passengers travelling from

India every minute



2019758 passengers



20203,703 passengers



Value of engineering

exports every minute



2019171,975



2020566,408



India In A MinuteOil & Gas

Petroleum exported



2019$ 83,544



2020$ 382,438



Leather clothing

sold every minute



2019$ 5,682



2020$ 13,747



Liquid cargo

shipped every minute



2019549 tonnes



20201,592 tonnes



Revenue from IT

exports every minute



2019$ 282,161



2020$ 674,920



Revenue earned every minute by

top 50 movies produced



2019$ 1,011



2020$ 2,702



Earnings from passenger

traffic every minute



2019$ 13,714



2020$ 23,714



Finished steel

consumed every minute



2019197 tonnes



2020380 tonnes



2019 2020
Vehicles produced every minute64 vehicles162 vehicles
Cars exported every minute10 units23 units
Two and Three-wheelers manufactured every minute54 vehicles142 vehicles
2019 2020
Leather clothing sold every minute$ 5,682 $13,747
2019 2020
Cargo shipped every minute 1,395 tonnes 2,349 tonnes
Liquid cargo shipped every minute 549 tonnes 1,592 tonnes
2019 2020
Revenue from IT exports every minute $ 282,161 $674,920
2019 2020
Revenue generated by advertising industry every minute $ 23,071 $86,152
Revenue earned every minute by top 50 movies produced $ 1,011 $2,702
Revenue earned every minute by top 10 hollywood movies released $ 341 $98,418
2019 2020
Freight transported by Indian Railways every minute 2,300 tonnes 6,278 tonnes
Earnings from passenger traffic every minute $ 13,714 $23,714
2019 2020
Finished steel consumed every minute 197 tonnes 380 tonnes
Cement consumed every minute 667 tonnes 1,379 tonnes
Cement produced every minute 680 tonnes 1,287 tonnes
2019 2020
Agrochemicals imported every minute 112 kg 234 kg
Olefins exported every minute 763 kg 85,747 kg
2019 2020
Expenditure on modernization of armed forces every minute $ 21,593 $35,670
2019 2020
Food grains produced every minute 541 tonnes 576 tonnes
Basmati rice exported every minute $ 10,866 $89,985
Sectors In India

Capital Goods


Capital goods contribute 12% to the overall manufacturing in India


India’s Capital Goods manufacturing industry serves as a strong base for
its engagement across sectors such as engineering, construction, infrastructure
and consumer goods, amongst others…



  • 12%

    Share in manufacturing

  • 5mn

    Direct employment

  • 40%

    T&D equipment demand

  • $5.50bn

    Electrical machinery exports

Automobile
Aviation
Capital Goods
Ports & Shipping
Retail & E-commerce
Renewable Energy
Pharmaceuticals
Oil & Gas
IT & BPM
Food Processing
Healthcare
Electronic Systems
Defence Manufacturing
Construction
Chemicals
BFSI – Fintech & Financial Services
  
Sectors In India

Mizoram

Rich resources of minerals, petroleum and hydropower

Mizoram has the 2nd highest literacy rate in India. The state is primarily an agrarian state,
where some of the major horticulture crops grown include oranges, banana, pineapple…

  • $2.70 bn

    GSDP, Current price

    (2017-18)

  • 0.60 %

    GSDP growth rate, YoY

    Current price (2017-18)

  • $2,002  

    Per capita income,

    Current price (2017-18)

  • 92 %

    Literacy rate

Sectors In India

Andaman and Nicobar Islands

Richly endowed with over 200 species of timber

With over 85% of the area under tropical rainforests, Andaman and Nicobar Islands offer
attractive opportunities for the wood-based industries. The Islands also offer
opportunities for…

  • $1,098 bn

    GSDP, Current price

    (2017-18)

  • 15.40 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,039  

    Per capita income,

    Current price (2016-17)

Sectors In India

Andhra Pradesh

Ranks #1 in Ease of Doing Business in India

Andhra Pradesh has established itself as one of the most prominent connection points
with major world markets. The state is a logistics marvel on the eastern coast of India
with 6 ports, 6…

  • $125.60 bn

    GSDP, Current price

    (2017-18)

  • 16 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,233 

    Per capita income, Current price

    (2017-18)

  • $18.70 bn

    FDI inflow, includes Telangana

    (2000- 2019)

Sectors In India

Jammu & Kashmir

Leading producer and exporter of dry fruits

Jammu and Kashmir is a leading producer and exporter of dry fruits. Horticulture and floriculture
are the mainstays of the state's economy. The state is also renowned for its handloom and…

  • $19.71 bn

    GSDP, Current price(includes Ladakh)

    (2017-18)

  • 11.71 %

    GSDP growth rate, YoY (includes Ladakh)

    (2017-18)

  • $1,557  

    Per capita income, Current price includes Ladakh)

    (2017-18)

  • 74  %

    Share of renewable in energy(includes Ladakh)

    (2000- 2019)

Sectors In India

Himachal Pradesh

Home to Asia's largest pharmaceutical hub

Himachal Pradesh generates 100% electricity from green energy sources. With an estimated hydropower
potential of over 27,000 MW, the state has the potential to contribute 26% to India's…

  • $21.70 bn

    GSDP, Current price

    (2018-19)

  • 11.20 %

    GSDP growth rate, YoY

    (2018-19)

  • $2,531 

    Per capita income, Current price

    (2018-19)

  • 94 %

    Share of renewable in energy

Sectors In India

Punjab

Ranks 2nd in the production of cereals in India

Known as the 'Granary of India', Punjab has an excellent network of irrigation facilities
with 99.9% of net area sown covered under irrigation. Major industries in the state include food…

  • $74.10 bn

    GSDP, Current price

    (2018-19)

  • 9 %

    GSDP growth rate, YoY

    (2018-19)

  • $1,920 

    Per capita income,Current price

    (2016-17)

  • 83 %

    Arable land

Sectors In India

Haryana

Ranks #3 in Ease of Doing Business in India

Haryana is the largest producer of passenger vehicles and motorcycles in India.
The state is one of India’s largest automobile hubs and has also emerged as a base for the knowledge industry…

  • $93 bn

    GSDP, Current price

    (2017-18)

  • 11.60 %

    GSDP growth rate, YoY

    (2017-18)

  • $3,025  

    Per capita income, Current price

    (2017-18)

  • 84 %

    Arable land

Sectors In India

Uttarakhand

State with the 3rd highest hydropower potential

Uttarakhand is the most visited tourist destination amongst all hill stations in India. The state
attracted close to 31 mn tourists in 2016. About 68% of the state’s geographical area is…

  • $33.80  bn

    GSDP, Current price

    (2017-18)

  • 11 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,752 

    Per capita income, Current price

    (2017-18)

  • $71 bn

    Share of renewable in energy

Sectors In India

Rajasthan

2nd largest mineral producing state

Rajasthan offers the highest solar energy potential in India of 142 GW. The state is the
largest producer of coarse cereals and coriander, and the second largest producer of pulses,…

  • $132.20 bn

    GSDP, Current price

    (2018-19)

  • 12.30 %

    GSDP growth rate, YoY

    (2018-19)

  • $1,545 

    Per capita income, Current price

    (2017-18)

  • $1.98 bn

    FDI inflow, includes Telangana

    (2000- 2019)

Sectors In India

Uttar Pradesh

Largest producer of foodgrains in India

Uttar Pradesh has the longest road, rail and river network in India. The key industries
in the state include food processing, information technology (IT), tourism, mineral-based industries,…

  • $215 bn

    GSDP, Current price

    (2018-19)

  • 12 %

    GSDP growth rate, YoY

    (2018-19)

  • $825 

    Per capita income, Current price

    (2017-18)

  • $82 bn

    Arable land

Sectors In India

Gujarat

Highest number of operational ports and commercial
cargo ports

Gujarat is the 2nd largest producer of crude oil (onshore) and natural gas in India. One of
India's fastest growing states during 2013-17, Gujarat ranked #4 in Ease of Doing…

  • $173 bn

    GSDP, Current price

    (2016-17)

  • 11.70 %

    GSDP growth rate, YoY

    (2016-17)

  • $2,333 

    Per capita income, Current price

    (2016-17)

  • $23.20 bn

    FDI inflow,

    (2000- 2019)

Sectors In India

Madhya Pradesh

Largest producer of copper and diamonds in India

Madhya Pradesh has a solar power potential of 62 GW, which is 4th highest in India. Located
in central India, the state is popularly known as the 'heart of India' and borders 5…

  • $115.70  bn

    GSDP, Current price

    (2018-19)

  • 11 %

    GSDP growth rate, YoY

    (2018-19)

  • $1,227 

    Per capita income, Current price

    (2017-18)

  • $1.40 bn

    FDI inflow, includes

    Chhattisgarh (2000 - 2019)

Sectors In India

Bihar

Leading producer of horticulture crops in India

Bihar is the 3rd largest producer of vegetables in India. It is one of the strongest agricultural
states in India and 79% of the state population is engaged in the sector.

  • $125.60 bn

    GSDP, Current price

    (2017-18)

  • 16 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,233 

    Per capita income, Current price

    (2017-18)

  • $18.70 bn

    FDI inflow, includes Telangana

    (2000- 2019)

Sectors In India

Jharkhand

Ranks #4 in Ease of Doing Business in India

Jharkhand accounts for 40% of the mineral wealth in India. The state has a high yield in production
of food crops such as paddy and pulses. The state has an enviable logistical advantage…

  • $39.60 bn

    GSDP, Current price

    (2017-18)

  • 8.40 %

    GSDP growth rate, YoY

    (2017-18)

  • $966  

    Per capita income, Current price

    (2016-17)

  • $113 mn

    FDI inflow, includes Bihar

    (2000- 2019)

Sectors In India

West Bengal

Largest exporter of finished leather goods

West Bengal is home to the 2nd highest number of MSMEs, accounting for 14% of India's
total MSMEs. The state is the largest producer of vegetables in India. The strategically…

  • $157 bn

    GSDP, Current price

    (2017-18)

  • 13 %

    GSDP growth rate, YoY

    (2014-15)

  • $1,420 

    Per capita income, Current price

    (2017-18)

  • $5.60 bn

    FDI inflow, includes Sikkim

    Andaman & Nicobar Islands
    (2000 - 2019)

Sectors In India

Chhattisgarh

3rd largest mineral producing state

The state accounts for approximately 15% of the total steel produced in India. The new capital
of the state, Naya Raipur, is India's first greenfield smart city. The state shares its…

  • $44.60 bn

    GSDP, Current price

    (2018-19)

  • 9.70 %

    GSDP growth rate, YoY

    (2018-19)

  • $1,386 

    Per capita income, Current price

    (2018-19)

  • $1.40 bn

    FDI inflow, includes

    Madhya Pradesh (2000- 2019)

Sectors In India

Odisha

Largest mineral producing state

Odisha is considered as a hub for the mineral-based industries due to its large mineral deposits.
The state also contributes more than 50% to India's aluminium production and about 20% to…

  • $63.90 bn

    GSDP, Current price

    (2017-18)

  • 10.30 %

    GSDP growth rate, YoY

    (2017-18)

  • $1,244 

    Per capita income, Current price

    (2017-18)

  • $589 mn

    FDI inflow,

    (2000- 2019)

Sectors In India

Maharashtra

State with the highest GDP in India

Maharashtra's capital, Mumbai, is known as the financial capital of India and houses
the headquarters of most of the major corporate and financial institutions. The state has a good…

  • $387.40 bn

    GSDP, Current price

    (2017-18)

  • 10.60 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,456 

    Per capita income, Current price

    2016-17)

  • $128.60 bn

    FDI inflow, includes
    Dadra & Nagar Haveli,
    Daman & Diu

    (2000- 2019)

Sectors In India

Telangana

Ranks #2 in Ease of Doing Business in India

Telangana is the 2nd highest contributor to India's IT exports. The state's capital,
Hyderabad, is a major IT hub of the country. The state is also a leading producer and…

  • $121.40 bn

    GSDP, Current price

    (2018-19)

  • 15 %

    GSDP growth rate, YoY

    (2018-19)

  • $2,696 

    Per capita income, Current price

    (2017-18)

  • 42  %

    Share of renewable in energy

Sectors In India

Karnataka

World's 4th largest technology cluster in Bengaluru

Karnataka is regarded as the knowledge, research and innovation hub of Asia, with high-end R&D centres
of over 400 MNCs in the state. The state is also the IT hub of India and contributes…

  • $216 bn

    GSDP, Current price

    (2018-19)

  • 13.90 %

    GSDP growth rate, YoY

    (2018-19)

  • $2,961  

    Per capita income, Current price

    (2018-19)

  • $40.70 bn

    FDI inflow,

    (2000- 2019)

Sectors In India

Kerala

Largest producer of rubber in India

Kerala is a highly advanced society and scores high on human development indicators with the highest
literacy rate. The state is a major exporter of coir, spices, marine products, cashew,…

  • $106.60 bn

    GSDP, Current price

    (2017-18)

  • 7.18 %

    GSDP growth rate, YoY

    Current price (2017-18)

  • $3,088 

    Per capita income,

    Current price (2017-18)

  • $94 bn

    Literacy rate

Sectors In India

Tamil Nadu

State with the 2nd highest GDP in India

Tamil Nadu is the highest contributor to India's renewable energy capacity with 28%. The state has
a diversified manufacturing sector and features among the leaders in several industries…

  • $229.70 bn

    GSDP, Current price

    (2018-19)

  • 12.50 %

    GSDP growth rate, YoY

    (2018-19)

  • $2,284  

    Per capita income, Current price

    (2016-17)

  • $30.70 bn

    FDI inflow,

    (2000- 2019)

Sectors In India

Sikkim

First 100% organic state in the world

Highest hydropower generation capacity in India’s North-East. The state produces a variety
of food crops including rice, maize, tea, soybean, ginger, orange, pears,
potato and tomato. It is…

  • $3.50 bn

    GSDP, Current price

    (2017-18)

  • 11 %

    GSDP growth rate, YoY

    (2017-18)

  • $3,833  

    Per capita income, Current price

    (2016-17)

  • $91 bn

    Share of renewable in energy

Sectors In India

Arunachal Pradesh

Largest hydropower potential in India of 60,000 MW

Arunachal Pradesh's geographic location provides it with immense opportunities
for international trade with South Asian countries. The state is endowed with an
evergreen forest cover of…

  • $3.60 bn

    GSDP, Current price

    (2017-18)

  • 10 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,097 

    Per capita income, Current price

    (2017-18)

  • $75 bn

    Share of renewable in energy

Sectors In India

Assam

World's largest tea-producing region

Assam has highest recoverable reserves of crude oil and natural gas in India. The state
has more than 600 ha of land dedicated to industrial use. To capitalize on
its pool of natural…

  • $37.90 bn

    GSDP, Current price

    (2017-18)

  • 11  %

    GSDP growth rate, YoY

    (2017-18)

  • $1,003  

    Per capita income, Current price

    (2017-18)

  • 32 %

    Share of renewable in energy

Sectors In India

Meghalaya

Largest producer of coal and limestone in North-East India

Meghalaya receives the highest amount of rainfall in India of 12m annually. The state has
a hydroelectric power potential of approximately 3,000 MW. The state also has abundant deposits of…

  • $125.60 bn

    GSDP, Current price

    (2017-18)

  • 16 %

    GSDP growth rate, YoY

    (2017-18)

  • $2,233 

    Per capita income, Current price

    (2017-18)

  • $18.70 bn

    FDI inflow, includes Telangana

    (2000- 2019)

Sectors In India

Nagaland

Rich resources of minerals, petroleum and hydropower

Nagaland is home to one of the world's spiciest chillis, the Naga chilli. Major horticulture
crops grown in the state include banana, citrus, pineapple and potato. Among all the natural…

  • $3.20 bn

    GSDP, Current price

    (2016-17)

  • 10  %

    GSDP growth rate, YoY

    (2016-17)

  • $1,344 

    Per capita income, Current price

    (2016-17)

  • 56 %

    Share of renewable in energy

Sectors In India

Manipur

Moreh in Manipur is the gateway to South-East Asia

Manipur is the largest producer of oak tasar variety of silk in India.
More than 70% of the state’s geographical area falls under forest cover. Major forest products
of the state include…

  • $3.60  bn

    GSDP, Current price

    (2017-18)

  • 10.40  %

    GSDP growth rate, YoY

    (2017-18)

  • $972  

    Per capita income, Current price

    (2017-18)

  • 43 %

    Share of renewable in energy

Sectors In India

Tripura

2nd largest rubber producing state

Tripura is the largest producer of bamboo in North-Eastern India. The state is primarily known
for its agri-products such as coffee, pineapple, cashew nut and tea.
It is also the largest…

  • $7.40 bn

    GSDP, Current price

    (2017-18)

  • 16.50 %

    GSDP growth rate, YoY

    (2017-18)

  • $1,630 

    Per capita income, Current price

    (2017-18)

  • $88 bn

    iteracy rate

Sectors In India

Goa

State with the highest per capita income

Leading tourist destination in India, Goa saw six mn tourist arrivals in 2016,
five times the state's population.
The state is richly endowed with minerals such as iron ore,
manganese,

  • $10.90 bn

    GSDP, Current price

    (2017-18)

  • 12.14 %

    GSDP growth rate, YoY

    (2017-18)

  • $6,413 

    Per capita income, Current price

    (2017-18)

  • $985 mn

    FDI inflow,

    (2000- 2019)

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FAQ

Ans. A Liaison office of a foreign mother company is not treated as a separate and distinct entity in India and for all tax purposes, the Indian government taxes the profits of such entities at higher rates. As of now the Income Tax on the profit of a foreign company is 40% in contrast to the tax rate of 30% on an Indian company.


Ans. A foreign company before entering the Indian market may intend to conduct some preliminary research or representation before the potential customers or partners, for that limited purpose a foreign company normally establishes a representative office also known as a Liaison Office in India. Any person resident outside including a foreign company, group company, association of person can establish a liaison office in India.


Ans. A branch office of a foreign mother company is not treated as a separate and distinct entity in India and for all tax purposes, the Indian government taxes the profits of such entities at higher rates. As of now the Income Tax on the profit of a foreign company is 40% in contrast to the tax rate of 30% on an Indian company.


Ans.Yes, the profits arising out of the indian company where foreigners have invested is 100% repatriable without any restriction after payment of all corporate tax and dividend distribution tax.


Ans. Following type of foreign entities can invest in India without any restriction provided the sector open for investment either under automatic route or approval route.Foreign Company,Body Corporate Incorporated Outside IndiaNon Resident India(NRI)/Person of Indian Origin(PIO).


Ans. some of the major problem related to illegal gambling and betting activities are exponential growth of illegal trade and commerce, and corrupt practices which can hamper the indian economy.


Ans.The report of regulatory body suggested that bringing fdi in gambling and betting can result in employment generation, protection of the young and vulnerable against the dangers of unwise betting behaviour etc.


Ans. Any kind of collaboration agreements such as licensing for franchise, trademark, brand name, management contract, is also prohibited for Lottery Business.