Permissible Foreign Investment Under Respective Sectors
Sr. No. |
Sector/Activity |
FDI Cap / Equity |
Entry Route |
Other conditions |
I |
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1. |
Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture, Cultivation of Vegetables & Mushrooms under controlled conditions and services related to agro and allied sectors. NB: Besides the above, FDI is not allowed in any other agricultural sector /activity |
100% |
Automatic |
--- |
2. |
Tea Sector, including tea plantation NB: Besides the above, FDI is not allowed in any other plantation sector /activity |
100% |
FIPB |
Subject to divestment of 26% equity in favour of Indian partner/Indian public within 5 years and prior approval of State Government concerned in case of any change in future land use. |
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3. |
Mining covering exploration and mining of diamonds & precious stones; gold, silver and minerals. |
100% |
Automatic |
Subject to Mines & Minerals (Development & Regulation) Act, 1957 Press Note 18 (1998) and Press Note 1 (2005) are not applicable for setting up 100% owned subsidiaries in so far as the mining sector is concerned, subject to a declaration from the applicant that he has no existing joint venture for the same area and / or the particular mineral. |
4. |
Coal & Lignite mining for captive consumption by power projects, and iron & steel, cement production and other eligible activities permitted under the Coal Mines (Nationalisation) Act, 1973. |
100% |
Automatic |
Subject to provisions of Coal Mines (Nationalisation) Act, 1973. |
5. |
Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities. NB: FDI will not be allowed in mining of “prescribed substances” listed in Government of India notification No. S.O. 61(E) dated 18.1.2006 issued by the Department of Atomic Energy. |
100% |
FIPB |
Subject to sectoral Regulations and the Mines and Minerals (Development & Regulation) Act, 1957 and the following conditions – i. value addition facilities are set up within India along with transfer of technology; ii. disposal of tailings during the mineral separation shall be carried out in accordance with Regulations framed by the Atomic Energy Regulatory Board such as Atomic Energy (Radiation Protection) Rules, 2004 and the Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987. |
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6. |
Alcohol- Distillation & Brewing |
100% |
Automatic |
Subject to license by appropriate authority. |
7. |
Cigars & Cigarettes- Manufacture |
100% |
FIPB |
Subject to industrial license under the Industries (Development & Regulation) Act, 1951. |
8. |
Coffee & Rubber processing & warehousing |
100% |
Automatic |
-- |
9. |
Defence production |
26% |
FIPB |
Subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition. |
10. |
Hazardous chemicals, viz., hydrocyanic acid and its derivatives; phosgene and its derivatives; and isocyanates and diisocyantes of hydrocarbon. |
100% |
Automatic |
Subject to industrial license under the Industries (Development & Regulation) Act, 1951 and other sectoral Regulations. |
11. |
Industrial explosives - Manufacture |
100% |
Automatic |
Subject to industrial license under the Industries (Development & Regulation) Act, 1951 and Regulations under Explosives Act, 1898 |
12. |
Drugs and Pharmaceuticals including those involving use of recombinant DNA technology |
100% |
Automatic |
-- |
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13. |
Power including generation (except Atomic energy); transmission, distribution and Power trading. |
100% |
Automatic |
Subject to provisions of the Electricity Act, 2003 |
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14. |
Airports- |
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a. |
Greenfield projects |
100% |
Automatic |
Subject to sectoral Regulations notified by Ministry of Civil Aviation |
b. |
Existing projects |
100% |
FIPB beyond 74% |
Subject to sectoral Regulations notified by Ministry of Civil Aviation |
15. |
Air Transport Services including Domestic Scheduled Passenger Airlines; Non-Schedules Airlines; Chartered Airlines; Cargo Airlines; Helicopter and Seaplane Services |
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a. |
Scheduled Air Transport Services/Domestic Scheduled Passenger Airline |
49%- FDI; 100%- for NRIs investment |
Automatic |
Subject to no direct or indirect participation by foreign airlines and Sectoral Regulations. |
b. |
Non-Scheduled Air Transport Service / Non-Scheduled airlines, Chartered airlines, and Cargo airlines |
74%- FDI 100%- for NRIs investment |
Automatic |
Subject to no direct or indirect participation by foreign airlines in Non-Scheduled and Chartered airlines. Foreign airlines are allowed to participate in the equity of companies operating Cargo airlines. Also subject to sectoral Regulations. |
c. |
Helicopter Services / Seaplane services requiring DGCA approval |
100% |
Automatic |
Foreign airlines are allowed to participate in the equity of companies operating Helicopter and seaplane airlines. Also subject to sectoral Regulations. |
16. |
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a. |
Ground Handling Services |
74%- FDI 100%- for NRIs investme nt |
Automati c |
Subject to sectoral Regulations and security clearance. |
b. |
Maintenance and Repair organizations; flying training institutes; and technical training institutions |
100% |
Automatic |
-- |
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17. |
Asset Reconstruction Companies |
49%(only FDI) |
FIPB |
Where any individual investment exceeds 10% of the equity, provisions of Section 3(3) (f) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should be complied with. |
| 18 |
Banking - Private sector |
74% (FDI+FII) Within this limit, FII investme nt not to exceed 49% |
Automatic |
Subject to guidelines for setting up branches / subsidiaries of foreign banks issued by RBI. |
19. |
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a. |
FM Radio |
FDI +FII investment up to 20% |
FIPB |
Subject to guidelines notified by Ministry of Information & Broadcasting. |
b. |
Cable network |
49% (FDI+FII) |
FIPB |
Subject to Cable Television Network Rules (1994), notified by Ministry of Information & Broadcasting. |
c. |
Direct-To-Home |
49% (FDI+FII). Within this limit, FDI compone nt not to exceed 20% |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting |
d. |
Setting up hardware facilities such as up-linking, HUB, etc. |
49% (FDI+FII) |
FIPB |
Subject to Up-linking Policy notified by Ministry of Information & Broadcasting. |
e. |
Up-linking a News & Current Affairs TV Channel |
26% (FDI+FII) |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting |
f. |
Up-linking a Non- news & Current Affairs TV Channel |
100% |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting. |
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20. |
Commodity Exchanges |
49% (FDI+FII) FDI – 26% FII – 23% |
FIPB |
FII purchases shall be restricted to secondary market only. Subject to regulations specified by concerned Regulators. |
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21. |
Construction Development projects, including housing, commercial premises, resorts, educational institutions, recreational facilities, city and regional level infrastructure, townships. NB: FDI is not allowed in Real Estate Business |
100% |
Automatic |
Subject to conditions notified vide Press Note 2 (2005 Series) including: a. Minimum capitalization of US$ 10 million for wholly owned subsidiaries and US$ 5 million for joint venture. The funds would have to be brought within six months of commencement of business of the Company. b. Minimum area to be developed under each project- 10 hectares in case of development of serviced housing plots; and built-up area of 50,000 sq. mts. In case of construction development project; and any of the above in case of a combination project. [Note 1: For investment by NRIs, the conditions mentioned in Press Note 2 (2005) are not applicable. Note 2: For investment in SEZs, Hotels & Hospitals, conditions mentioned in Press Note 2(2005) are not applicable ] |
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22. |
Courier services for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898. |
100% |
FIPB |
Subject to existing laws and exclusion of activity relating to distribution of letters, which is exclusively reserved for the State. |
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23. |
Infrastructure companies in securities markets namely, Stock Exchanges, Depositories and Clearing Corporations |
49% (FDI+FII) FDI – 26% FII – 23% |
FIPB |
FII purchases shall be restricted to secondary market. Subject to regulations specified by concerned Regulators. |
24. |
Credit Information Companies(CIC) |
49% (FDI+FII) Within this limit, FII investmen t not to exceed 24% |
FIPB |
Foreign Investment in CIC will be subject to Credit Information Companies (Regulation) Act, 2005. Subject to regulations specified by concerned Regulators. |
25. |
Industrial Parks both setting up and in established Industrial Parks |
100% |
Automatic |
Conditions in Press Note 2(2005) applicable for construction development projects would not apply provided the Industrial Parks meet with the under-mentioned conditions- i. it would comprise of a minimum of 10 units and no single unit shall occupy more than 50%of the allocable area and ; ii. the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area. |
26. |
|
26% |
Automatic |
Subject to licensing by the Insurance Regulatory & Development Authority |
27. |
Investing companies in infrastructure /services sector (except telecom sector) |
100% |
FIPB |
Where there is a prescribed cap for foreign investment, only the direct investment will be considered for the prescribed cap and foreign investment in an investing company will not be set off against this cap provided the foreign direct investment in such investing company does not exceed 49% and the management of the investing company is with the Indian owners. |
28. |
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i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) xv) xvi) xvii) xviii) |
Merchant banking Underwriting Portfolio Management Services Investment Advisory Services Financial Consultancy Stock Broking Asset set Management Venture Capital Custodial Services Factoring Credit Rating Agencies Leasing & Finance Housing Finance Forex Broking Credit card Business Money changing business Micro credit Rural credit |
100% |
Automatic |
Subject to: a. Minimum capitalization norms for fund based NBFCs - US$ 0.5 million to be brought upfront for FDI up to 51%; US$ 5 million to be brought upfront for FDI above 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months, for FDI beyond 75% and up to 100%. b. Minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million. c. Foreign investors can set up 100% operating subsidiaries without the condition to disinvest a minimum of 25% of its equity to Indian entities subject to bringing in US$ 50 million without an restriction on number of operating subsidiaries without bringing additional capital. d. Joint venture operating NBFCs that have 75% or less than 75% foreign investment will also be allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow. e. Complianc with the guidelines of the RBI. |
29. |
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a. |
Refining |
49% in case of PSUs. 100% in case of Private companies |
FIPB (in case of PSUs) Automatic (in case of private companies) |
Subject to Sectoral policy and no divestment or dilution of domestic equity in the existing PSUs. |
b. |
Other than Refining and including market study and formulation; investment/ financing; setting up infrastructure for marketing in Petroleum & Natural Gas sector. |
100% |
Automatic |
Subject to sectoral Regulations issued by Ministry of Petroleum & Natural Gas. |
30. |
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a. |
Publishing of |
26% |
FIPB |
Subject to guidelines notified by |
newspaper and periodicals dealing with news and current affairs |
Ministry of Information & Broadcasting. (www.mib.nic.in) |
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b. |
Publishing of scientific magazines/ specialty journals/ periodicals |
100% |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting. (www.mib.nic.in) |
31. |
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a. |
Basic and cellular, Unified Access Services, National/ International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value added telecom services |
74% (Including FDI, FII, NRI, FCCBs, ADRs, GDRs, convertible preferene shares, and proportionate foreign equity in Indian promoters / Investing Company) |
Automatic up to 49%. FIPB beyond 49%. |
Subject to guidelines notified in the Press Note 3(2007 Series) dated April 19, 2007. |
b. |
ISP with gateways, radio- paging, end-to-end bandwidth. |
74% |
Automatic up to 49%. FIPB beyond 49%. |
Subject to licensing and security requirements notified by the Department of Telecommunications. |
c. d. |
(a) ISP without gateway; (b) infrastructure provider providing dark fibre, r ight of way, duct space, tower (Category I); (c) electronic mail and voice mail. Manufacture of telecom equipments |
100% 100% |
Automatic up to 49%. FIPB beyond 49%. Automatic |
Subject to the condition that such companies shall divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Also subject to licensing and security requirements, where required. Subject to sectoral requirements. |
32. |
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a. |
Wholesale/cash & carry trading |
100% |
Automatic |
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b . c. d. e. |
Trading for Exports Trading of items sourced from small scale sector Test marketing of such items for which a company has approval for manufacture Single Brand Product retailing |
100% 100% 100% 51% |
Automatic FIPB FIPB FIPB |
Subject to the condition that the test marketing approval will be for a period of two years and investment in setting up manufacturing facilities commences simultaneously with test marketing. Subject to guidelines for FDI in trading issued by Department of Industrial Policy & Promotion vide Press Note 3 (2006 Series) dated February 10, 2006. |
f. |
Multi Brand Retain Trading |
51% |
FIPB |
Subject to sectoral guidelines |
33. |
Satellites - Establishment and operation |
74% |
FIPB |
Subject to sectoral guidelines issued by Department of Space / ISRO |
34. |
Special Economic Zones and Free Trade Warehousing Zones covering setting up of these Zones and setting up units in the Zones |
100% |
Automatic |
Subject to Special Economic Zones Act, 2005 and the Foreign Trade Policy. |
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35. |
Drugs and Pharmaceuticals including those involving recombitant DNA technology |
100% |
Automatic |
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