Larsen, a foreign investor wants to make investment in the following businesses. Identify, giving reasons, whether such investments are under automatic route, government route or prohibited transactions under the Foreign

Larsen, the foreign investor can make investment as follows: Investment in tea plantations: Government Route; because, the activities in tea plantation require industrial license. Hence investment in this activity is possible only through Government route. 49% investment in insurance sector: Government Route; because, Investment in Insurance sector up to 26% allowed under automatic route, beyond 26% upto 49% investment in insurance sector requires government approval. Investment in S.K. Tours & Travels: Automatic route; because 100% FDI is allowed. Sikkim lottery investment: Prohibited; because lottery business is prohibited. 49% investment in a trading company doing export activities: Automatic Route; up to 51% of the investment is allowed under automatic route.