by way of taking up participation interest) by Navaratna Public Sector Undertakings were allowed under the automatic route and subsequently the facility was extended to other Indian entities as well. Further, in 2004, the External Commercial Borrowing policy was modified and funding of JVs/WOS abroad was included as a permissible end-use of the funds raised.
At present, any Indian party can make overseas direct investment in any bona-fide activity except certain real estate activities {i.e., buying and selling of real estate or trading in Transferable Development Rights (TDRs)} and banking business (which are considered by an inter-Ministerial group) that are specifically prohibited.