How was foreign investment encoveraged by the new Industrial Policy?

1.	How was foreign investment encoveraged by the new Industrial Policy?
Answer» Industries were categorized on the basis of investment under the new Industrial Policy, and industries which required high investments were listed and 51 per cent foreign investment was permitted without governmental clearance in them. For industries in service sector, the limit for foreign investment was raised from 51 per cent to 74 per cent and later to 100 per cent. In recent time, foreign investment is fully restricted in certain sectors, such as- retail business, atom energy, trade of lottery and gambling.

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