Union Minister for MSME Kalraj Mishra, during his recent visit to China in October 2016, invited Chinese businesses to have partnership with Indian businesses including MSMEs for technological collaboration and manufacturing in India.

FDI policy, places certain restrictions on foreign investment in certain sectors. Subject to such restrictions, foreign investors could setup enterprises in India without a lower level ceiling on investment. Such investment could be Greenfield as well as brownfield in existing enterprises.

India has one of the most liberalized FDI policies in the world, wherein 100% FDI under automatic route is permitted in most of the sectors/activities. There is only a small list of sectors/activities where FDI is regulated i.e. subjected to government approval, cap or having other conditionalities. The FDI policy equally applies to MSME sector.

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