At present 100% FDI through automatic route is allowed in construction-development projects — townships, residential and commercial buildings, roads, bridges, hotels, resorts, hospitals, educational institutions, recreational facilities and city and regional-level infrastructure, subject to certain rules on repatriation. India, however, prohibits FDI in the real estate business or construction of farmhouses. FDI in construction development rose to $617 million in FY20 from $213 million in FY19.
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