As of April 2022, how much FDI is permitted in railways under automatic route in construction, operation, and maintenance of Rail Infrastructure projects?

Correct option is D

​The correct answer is (d) 100%.

• As of April 2022, 100% Foreign Direct Investment (FDI) is permitted under the automatic route in the construction, operation, and maintenance of railway infrastructure projects in India.
• This allows foreign investors to contribute significantly to the development of India's railway network, especially in areas like infrastructure development, modernization, and technology upgrades.
• The automatic route means that no prior approval from the government is required for FDI up to 74%, making it easier for international investors to enter the railway sector.

Information Booster:

A Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country.

• FDI Definition An investment is considered FDI if it involves acquiring at least 10% or more of the post-issue paid-up capital of a company.
• The Foreign Exchange Management Act (FEMA) governs FDI in India, defining the regulatory framework
• FDI is permitted through two routes: the Automatic Route and the Government Route.

1. Automatic Route: Allows foreign investors to invest without prior approval, applicable to most sectors.
2. Government Route: Requires approval from the Indian government for certain sectors or investments.

Following are the FDI limits for different sectors in India: