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.

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February 2024