SECTOR | FDI POLICY |
Advertising | 100% FDI is permitted under the automatic route |
Airports | Greenfield projects: 100% FDI is permitted under the automatic route. Existing projects: FDI up to 100% is permitted. FDI up to 74% is under the automatic route and beyond 74% under the Government route.
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Asset Reconstruction Companies ("ARCSs") | Persons resident outside India, other than Foreign Institutional Investors (“FIIs”), can invest in the equity capital of ARCs registered with the RBI under the Government route. Investments by FIIs are not permitted in the equity capital of ARCs and FDI is restricted to 49% of the paid-up capital of the ARC. However, registered FIIs can invest in security receipts (“SRs”) issued by ARCs. FIIs can invest up to 49% of each tranche of SRs, with the condition that investment by a single FII in each tranche of SRs must not exceed 10% of the issue. |
Banking - Private Sector | The FDI limit in private sector banks is 74% including investment by FIIs. FDI up to 49% is under the automatic route and beyond that up to 74% under the Government route. |
Banking - Public Sector | FDI in nationalized banks is subject to an overall statutory limit of 20% under the Government route. |
Business Services | 100% FDI permitted under the automatic route in data processing, software development and computer consultancy services; software supply services, business and management consultancy services, market research services, and technical testing and analysis services. |
Commodity Exchanges | There is a composite ceiling of 49% for FDI under the Government route as follows: (i) investment up to 26% as FDI under the FDI Scheme incorporated as Schedule 1 under Regulation 5(1) of the FEMA Regulations (ii) investment up to 23% by registered FIIs under the Portfolio Investment Scheme incorporated as Schedule 2 under Regulation 5(2) of the FEMA Regulations FII purchases are restricted to the secondary market only. No foreign investor/entity, including persons acting in concert, can hold more than 5% of the equity in these companies. |
Construction and Maintenance | 100% FDI is permitted under the automatic route in the construction and maintenance of, inter alia, roads, rail-beds, bridges, tunnels, pipelines, hydroelectric projects, power plants and industrial plants. 100 % FDI is permitted under the automatic route in the construction and maintenance of roads and highways offered on BOT basis including the collection of tolls. |
Defence | FDI up to 26% is permitted under the Government Route. |
Drugs and Pharmaceuticals | 100% FDI is permitted under the automatic route. |
Health and Medical services | 100% FDI is permitted under the automatic route. |
Hotels and Tourism | 100% FDI is permitted under the automatic route. |
Insurance | FDI up to 26% is allowed under the automatic route. |
Mining | 100% FDI is permitted under the automatic route for, inter alia,:· - Mining and exploration of metal and non-metal ores·
- Coal and lignite mining for captive consumption by power projects, iron & steel and cement units
- Setting up coal processing plants like washeries
FDI up to 100% is permitted under the Government route in mining and mineral separation of titanium bearing minerals and ores. |
Non-banking finance companies ("NBFCs") | 100% FDI in NBFCs is permitted under the automatic route in activities such as merchant banking, asset management, investment advisory services, financial consultancy, stock broking and forex broking. |
Petroleum and Natural Gas | 100% FDI is permitted under the automatic route in exploration of oil and natural gas fields, infrastructure related to marketing of petroleum products, actual trading and marketing of petroleum products, petroleum product pipelines, natural gas/LNG pipelines, market study and formulation and petroleum refining in the private sector. FDI up to 49% is permitted under the Government route in petroleum refining by the Public Sector Undertakings. This should not involve any divestment or dilution of domestic equity in the existing PSUs. |
Ports and Harbours | 100% FDI is permitted under the automatic route. |
Power | 100% FDI is permitted under the automatic route for: (i) generation and transmission of electric energy produced in hydro-electric, coal/lignite based, thermal, oil-based and gas-based thermal power plants; (ii) non-conventional energy generation and distribution; (iii) distribution of electric energy to household, industrial & commercial users; (iv) power trading. |
Research and Development | 100% FDI is permitted under the automatic route. |
Telecommunications | FDI up to is 74% is permitted. FDI up to 49% is on the automatic route and beyond that on the Government route. |
Trading | 100% FDI is permitted under the automatic route in wholesale trading and e-commerce activities. |
Venture Capital Fund | A Foreign Venture Capital Investor (“FVCI”) may contribute up to 100% of the capital of an Indian Venture Capital Undertaking under the automatic route, and may also set up a domestic asset management company to manage the fund. FVCIs are also allowed to invest in other companies subject to FDI regulations. |
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