Today, the Foreign Direct Investment (FDI) policy in India is widely reckoned to be among the most liberal in the emerging economies and FDI up to 100% is allowed under the automatic route in most sectors and activities.
In addition to (FDI), Foreign Institutional Investment (FII) is also flowing into India. Qualified foreign entities (other than those predominantly owned by non - resident Indians) seeking to undertake investments in India are regarded as FIIs.