Explanation:

Statement 1 is incorrect: The entry of FDI’s by non-resident citizens is regulated through automatic and approval route.
Supplementary notes: Foreign Direct Investment (FDI)

• The entry of Foreign Direct Investment by non-residents into India is regulated through two routes automatic route and approval route.The automatic route means less restriction or more liberalized regulation.Any approval from the Reserve Bank or Government of India for the investment is not required by foreign investor and Indian company.

FDI in Service Sector

• FDI equity inflows into the services sector accounted for more than 60 per cent of the total FDI equity inflows into India.
• During 2018-19, FDI equity inflows into services sector fell by US$696 million or 1.3 per cent from the previous year.
• The Government has implemented FDI reforms in a number of sectors, including defense, construction development, insurance/pension/other financial services, asset reconstruction companies, broadcasting, civil aviation, pharmaceuticals and trading etc.
• An investor-friendly FDI policy has been put in place under which up to 100 per cent FDI is permitted via automatic route in most sectors, including singlebrand retail trading, construction development and regulated financial sector activity.