For the real sector, there is almost complete freedom as far as capital account transactions are concerned. In foreign direct investment, the restrictions mostly pertain to sectoral caps in a few sectors deriving more from strategic and social considerations rather than strictly economic ones. Portfolio investment is almost completely open.
In fact, the unrestricted access to foreign portfolio investors has brought great buoyancy to the equity markets, but it also sometimes leads one to wonder whether we are selling our equities cheap. Overseas investment by Indian enterprise is also fairly permissive.