POLICY ON FOREIGN DIRECT INVESTMENT (FDI)
1. Sectors prohibited for FDI
I. RETAIL TRADING (EXCEPT SINGLE BRAND PRODUCT RETAILING
II. ATOMIC ENERGY
III. LOTTERY BUSINESS
IV. GAMBLING AND BETTING
2. All Activities/ Sectors would require prior Government
approval for FDI in the following circumstances:
i. where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale sector.
3. In Sectors/Activities not listed below, FDI is permitted
up to 100% on the automatic route subject to sectoral
rules / regulations applicable.
4. Sector-specific policy for FDI : In the following
sectors/activities,
TABULOR REPRESTATION OF THE FDI ALLOWANCE IN VARIOUS SECTOR
SR. NO. SECTOR/ACTIVITY FDI CAP/EQUITY ENTRY ROUTE
1. Airports
a. Greenfield projects
100% Automatic
b. Existing projects
100% FIPB beyond 74%
2. Air Transport
Services 49%- FDI;
100%- for NRI
Automatic
3. Atomic Minerals
74%
FIPB
4. Banking - Private sector 74%
(FDI+FII)
Automatic
5. Broadcasting
a. FM Radio FDI +FII
Investment up to 20%
FIPB
b. Cable network
49%
FIPB
c. Direct-To-Home
49%
FIPB
6. Cigars & Cigarettes-
Manufacture
100%
FIPB
7. Coal & Lignite mining for captive consumption by power projects, and iron & steel, cement production.
100%
Automatic
8. Construction Development projects, including housing, commercial premises, resorts, educational institutions, recreational facilities, city and regional level infrastructure, townships.
100%
Automatic
9. Defense production
26%
FIPB
10. Hazardous chemicals.
100%
Automatic
11. Industrial explosives- Manufacture
100%
Automatic
12. Insurance
26%
Automatic
13. Investing companies in
infrastructure/ services sector
(except telecom sector)
49%
FIPB
14. Mining covering exploration and mining of diamonds & gold, silver and minerals. 100%
Automatic
15. Petroleum & Natural Gas
a. Other than Refining and including market study and formulation; investment/ financing; setting up infrastructure for marketing in Petroleum & Natural Gas sector.
100%
Automatic
b. Refining
26% in case of PSUs 100% in case of Private companies FIPB (in case ofPSUs)
16. Tea Sector, including tea
Plantation 100%
FIPB
17. Trading
a. Wholesale/cash
& carry trading
100%
Automatic
b. Trading for exports
100%
Automatic
c. Trading of items sourced from
small scale sector
100%
FIPB
e. Single Brand product retailing
51%
FIPB
18. Satellites -Establishment
and operation
74%
FIPB
19. Print Media
Publishing of newspaper and Periodicals dealing with news and current affairs
26%
FIPB
20. Special Economic Zones and Free Trade Warehousing
Zones covering setting up of these Zones and setting up
units in the Zones.
100%
Automatic
1. Sectors prohibited for FDI
I. RETAIL TRADING (EXCEPT SINGLE BRAND PRODUCT RETAILING
II. ATOMIC ENERGY
III. LOTTERY BUSINESS
IV. GAMBLING AND BETTING
2. All Activities/ Sectors would require prior Government
approval for FDI in the following circumstances:
i. where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale sector.
3. In Sectors/Activities not listed below, FDI is permitted
up to 100% on the automatic route subject to sectoral
rules / regulations applicable.
4. Sector-specific policy for FDI : In the following
sectors/activities,
TABULOR REPRESTATION OF THE FDI ALLOWANCE IN VARIOUS SECTOR
SR. NO. SECTOR/ACTIVITY FDI CAP/EQUITY ENTRY ROUTE
1. Airports
a. Greenfield projects
100% Automatic
b. Existing projects
100% FIPB beyond 74%
2. Air Transport
Services 49%- FDI;
100%- for NRI
Automatic
3. Atomic Minerals
74%
FIPB
4. Banking - Private sector 74%
(FDI+FII)
Automatic
5. Broadcasting
a. FM Radio FDI +FII
Investment up to 20%
FIPB
b. Cable network
49%
FIPB
c. Direct-To-Home
49%
FIPB
6. Cigars & Cigarettes-
Manufacture
100%
FIPB
7. Coal & Lignite mining for captive consumption by power projects, and iron & steel, cement production.
100%
Automatic
8. Construction Development projects, including housing, commercial premises, resorts, educational institutions, recreational facilities, city and regional level infrastructure, townships.
100%
Automatic
9. Defense production
26%
FIPB
10. Hazardous chemicals.
100%
Automatic
11. Industrial explosives- Manufacture
100%
Automatic
12. Insurance
26%
Automatic
13. Investing companies in
infrastructure/ services sector
(except telecom sector)
49%
FIPB
14. Mining covering exploration and mining of diamonds & gold, silver and minerals. 100%
Automatic
15. Petroleum & Natural Gas
a. Other than Refining and including market study and formulation; investment/ financing; setting up infrastructure for marketing in Petroleum & Natural Gas sector.
100%
Automatic
b. Refining
26% in case of PSUs 100% in case of Private companies FIPB (in case ofPSUs)
16. Tea Sector, including tea
Plantation 100%
FIPB
17. Trading
a. Wholesale/cash
& carry trading
100%
Automatic
b. Trading for exports
100%
Automatic
c. Trading of items sourced from
small scale sector
100%
FIPB
e. Single Brand product retailing
51%
FIPB
18. Satellites -Establishment
and operation
74%
FIPB
19. Print Media
Publishing of newspaper and Periodicals dealing with news and current affairs
26%
FIPB
20. Special Economic Zones and Free Trade Warehousing
Zones covering setting up of these Zones and setting up
units in the Zones.
100%
Automatic