What is 'intent and obligation' of foreign direct investment in India under the Foreign Exchange Management Act, 1999 ?

It is the intent and objective of the Government of India to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills, for accelerated economic growth. Foreign Direct Investment (FDI) is a category of cross border investment made by a resident in one economy (the direct investor) with the objective of establishing a 'lasting interest' in an enterprise (the direct investment enterprise) i.e. resident in an economy other than that of the direct investor. Foreign Direct Investment (FDI) in India is undertaken in accordance with the FDI Policy which is formulated and announced by the Government of India. The FDI Policy governed by the provisions of the Foreign Exchange Management Act (FEMA), 1999 and prescribes amongst other things the mode of investments i.e. issue or acquisition of shares/convertible debentures and preference shares, manner of receipt of funds, pricing guidelines, sectorial cap and reporting of the investments to the Reserve Bank of India.