The extant Foreign Direct Investment (FDI) policy, as contained in Circular 2 of 2011 – Consolidated FDI Policy’ issued by Department of Industrial Policy & promotion is as under:-
| Sector/Activity | % of FDI Cap/Equity | Entry Route |
| FM (FM Radio) | 26% (FDI, NRI & PIO investments and portfolio investment) | Government |
| Construction Development (including old ate homes and educational institutions) | 100% | Automatic |
| Defence | 26% | Government |
FDI in Micro and Small Enterprises (MSEs) is subject to the sectoral caps, entry routes and other relevant sectoral regulations. FDI is also subject to applicable laws/regulations; security and other conditionalities.
The Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100% is permitted on the automatic route, in most sectors/activities. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains increasingly attractive and investor-friendly. Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to make it more investor friendly.
This information was given by Shri Jyotiraditya M. Scindia, Minister of State for Commerce and Industry in written reply to a question in the Lok Sabha today.
