FDI in India
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FDI Categories
100% FDI permitted through Automatic Route*
| Sector | Permitted Activities |
|---|---|
| Agriculture & Animal Husbandry |
Other than the activities provided under this head in the FDI Policy (as listed above), foreign investment is not allowed in any other agricultural sector / activity. |
| Plantation | FDI is allowed only in Tea, Coffee, Rubber, Cardamom, Palm Oil Tree, Olive Oil Tree and not in any other plantation activity |
| Mining & Exploration of metals & non-metals ores excluding titanium bearing minerals and its ores | |
| Coal & Lignite mining in respect of eligible activities (including captive consumption) | FDI up to 100% has been permitted under the automatic route for sale of coal, for coal mining activities including associated processing and now, foreign players would be permitted to mine coal and sell the same. This change shall become effective as on the date of the respective FEMA notification. |
| Single Brand Retail Trading, Duty Free Shops | |
| Railway Infrastructure |
Construction, operation and maintenance of the following:
|
| Construction Development projects | Construction Development: development of townships, construction of residential / commercial premises, roads or bridges, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure, townships, real estate broking business |
| Transport Services | Air Transport Services – non-scheduled air transport service / helicopters services / seaplane services requiring DGCA approval |
| Civil Aviation – Greenfield & Brownfield | |
| Cash & Carry Wholesale Trading | |
| Broadcasting Carriage Services | |
| Other Services at Airport | Other services include ground handling services subject to sectoral regulations and security clearance & maintenance and repair organizations; flying training institutes; and technical training institutions |
| Exploration of Petroleum & Natural Gas | including marketing of petroleum products & natural gas |
| Asset Reconstruction & Credit Information Companies | |
| Market Place E-commerce Activities | Market place model of e-commerce’ means providing of an information technology platform by an e-commerce entity on a digital & electronic network to act as a facilitator between buyer and seller |
| Up-link of non-News & Current Affairs TV Channels, Downlinking of TV channel | |
| Services (registered / regulated entity) | Any financial services activity which are regulated by any Financial Sector Regulator, foreign investment up to 100% will be allowed under Automatic Route |
| Industrial Park | |
| Pharmaceuticals – Greenfield Sector and Medical Device Manufacturing | |
| White Label ATM Operations | This sector has now been removed per the FEMA notification and subsumed under the financial services sector, but the same continues to exist under the FDI Policy. Both are permitted under the 100% Automatic Route. |
| Manufacturing | Per Press Note No. 4 (2019), contract manufacturing has been specifically covered under manufacturing and accordingly, manufacturing activities is now permitted under 100% automatic route, which can be undertaken either by the investee entity itself or through contract manufacturing in India under a legally tenable contract, whether on Principal to Principal or Principal to Agent basis. This change shall become effective as on the date of the respective FEMA notification. |
Note: For detailed definition, clarifications / exceptions, please refer to Consolidated FDI Policy including Press Notes
100% FDI permitted through Government Route
‘Government Route’ means that investment in the capital of resident entities by non-resident entities can be made only with the prior approval of Government (Competent Ministry/Department for grant of approval)
- Mining and minerals separation of titanium bearing minerals & ores and its value addition & integrated activities
- Retail Trading including through e-commerce in respect of food products manufactured and/ or produced in India
- Publishing/ printing of scientific and technical magazines/specialty journals/ periodicals
- Publication of facsimile edition of foreign newspapers
- Satellites-establishment and operations
Foreign investment in core investment companies (CIC) and other investing companies, engaged in the activity of investing in the capital of other company/ies/LLP, is permitted under Government Approval Route. CICs will additionally have to follow RBI regulatory framework. Note: For detailed definition, clarifications / exceptions, please refer to Consolidated FDI Policy including Press Notes
Note: For detailed definition, clarifications / exceptions, please refer to Consolidated FDI Policy including Press Notes
Up to 100% FDI permitted through Government Route + Automatic Route
| Telecom Services*** | Up to 49% (Automatic Route) | Above 49% (Government Route) |
| Defence Industry | Up to 49% (Automatic Route) | Above 49% (Government Route) |
| Pharmaceutical – Brownfield | Up to 74% (Automatic Route) | Above 74% (Government Route) |
| Air Transport Services *** | Up to 49% (Automatic Route) | Above 49% (Government Route) |
| Banking – Private Sector | Up to 49% (Automatic Route) | Above 49% Up to 74% (Government Route) |
| Private Security Agencies*** | Up to 49% (Automatic Route) | Above 49% Up to 74% (Government Route) |
***Note: For detailed definition, clarifications / exceptions, please refer to Consolidated FDI Policy including Press Notes
Up to 51% FDI permitted through Government Route / Automatic Route
| Automatic Route | Government Route |
|---|---|
| Insurance* – 49% | Up-linking of ‘News & Current Affairs’ TV Channels – 49% |
| Petroleum Refining by PSUs* – 49% | Terrestrial Broadcasting FM (FM Radio) – 49% |
| Infrastructure Companies in Securities Markets – 49% | Multi-Brand Retail Trading * – 51% |
| Power Exchanges – 49% | Banking Public Sector – 20% |
| Pension Sector – 49% | Print Media-Publishing *- 26% |
| Digital Media* – Up to 26% |
***Note: For detailed definition, clarifications / exceptions, please refer to Consolidated FDI Policy including Press Notes
Prohibited Sectors
- Lottery business including Government / private lottery, online lotteries, etc.*
- Gambling and betting including casinos*
- Chit funds
- Nidhi company
- Trading in Transferable Development Rights (TDR)
- Real Estate Business or Construction of farm houses**
- Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
- Sectors not open to private sector investment-atomic energy, railway operations (other than permitted activities mentioned under the Consolidated FDI policy)
*Foreign technology collaboration in any form including licensing for franchise, trademark, brandname, management contract is also prohibited for lottery business and gambling and betting activities
**Real estate business shall not include development of townships, construction of residential / commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations, 2014
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