FDI spurs economic growth especially when domestic saving is not enough to generate funds or capital investments. In India, FDI plays an important role when it comes to economic development
FDI in India is currently not permitted in the following sectors :
Lottery Business including Government/private lottery, online lotteries, etc.*
Gambling and Betting including casinos*
Chit Funds
Nidhi Company
Trading in Transferable Development Rights (TDR)
Real Estate Business or Construction of farmhouses**
Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
Sectors not open to private sector investment- atomic energy, railway operations (other than permitted activities mentioned under the Consolidated FDI policy)