As regards, non-debt flows, the overall approach has been to substantially liberalise FDI flows so as to meet domestic investment requirements and raise growth potential of the economy.
However, keeping in view socio-economic implications, FDI is prohibited in certain sectors, viz., lottery business, chit funds, nidhi companies, tobacco products, agriculture and plantation, and activities/sectors not open to private sector investment, e.g., atomic energy and railway transport other than mass rapid transport systems. Though FDI in multi-brand retail is not allowed, the Government is actively debating this issue.