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What does the automatic route in Foreign Direct Investment (FDI) imply?
  • a)
    No need for any approval from government agencies.
  • b)
    Investment in sectors with stringent regulations.
  • c)
    Seeking prior approval from the Reserve Bank.
  • d)
    Exclusively for investments in the defense sector.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What does the automatic route in Foreign Direct Investment (FDI) imply...
The automatic route in FDI means that foreign investors or Indian companies do not require any approval from government agencies or the Reserve Bank for their investments in certain sectors. It is a less restricted or more liberalized regulation.
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What does the automatic route in Foreign Direct Investment (FDI) imply?a)No need for any approval from government agencies.b)Investment in sectors with stringent regulations.c)Seeking prior approval from the Reserve Bank.d)Exclusively for investments in the defense sector.Correct answer is option 'A'. Can you explain this answer?
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