Consider the following sectors: 1)Plantation Sector 2)Mining and Exploration of Metal 3)Railway Infrastructure In which of the above, government has permitted 100% FDI through automatic route?

1 & 2 Only
3 Only
2 & 3 Only
1, 2 & 3

The correct answer is: A. 1 & 2 Only

The government has permitted 100% FDI through automatic route in the plantation sector and mining and exploration of metal sectors. However, FDI in the railway infrastructure sector is permitted only up to 74% through the automatic route. The remaining 26% FDI can be allowed through the government route after the approval of the Foreign Investment Promotion Board (FIPB).

The plantation sector includes the cultivation of tea, coffee, rubber, and other plantation crops. The mining and exploration of metal sector includes the mining of iron ore, copper, bauxite, and other metals. The railway infrastructure sector includes the construction, operation, and maintenance of railway lines, stations, and other railway infrastructure.

The government has permitted 100% FDI through automatic route in the plantation sector and mining and exploration of metal sectors in order to attract foreign investment and promote the development of these sectors. The government has also permitted 100% FDI through automatic route in the railway infrastructure sector, but only for projects that are of strategic importance to the country. For other projects in the railway infrastructure sector, FDI is permitted up to 74% through the automatic route, and the remaining 26% FDI can be allowed through the government route after the approval of the FIPB.

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