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“Discover the entry routes and equity caps for Foreign Direct Investment (FDI) across various sectors in India. Learn about automatic and government routes, sector-wise limits, and compliance procedures. Stay informed on FDI regulations with comprehensive insights from Prakasha & Co., ensuring businesses make informed investment decisions. Explore the FDI landscape in agriculture, mining, manufacturing, defense, broadcasting, aviation, construction, telecom, banking, insurance, and more. For detailed sector-wise FDI guidelines, visit Invest India’s official website.”

As discussed earlier FDI under sectors is permitted either through the Automatic route or Government route.  Under the Automatic Route, the non-resident or Indian company does not require any approval from the Government of India. Whereas, under the Government route, approval from the Government of India is required prior to investment.

Proposals for foreign investment under the Government route are considered by the respective Administrative Ministry/Department.

List for various sectors and FDI permitted to the respective sectors 

Sector/Activity Entry Route % of Equity/ FDI Cap
AGRICULTURE & ANIMAL HUSBANDRY 

  • Floriculture, Horticulture, and Cultivation of Vegetables & Mushrooms under controlled conditions;
  • Development and Production of seeds and planting material; 
  • Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, Apiculture ; and 
  • Services related to agro and allied sectors 

Note: Besides the above, FDI is not allowed in any other agricultural sector/activity

Automatic 100%
PLANTATION SECTOR 

  • Tea sector including tea plantations 
  • Coffee plantations 
  • Rubber plantations
  • Cardamom plantations 
  • Palm oil tree plantations
  • Olive oil tree plantations  

Note: Besides the above, FDI is not allowed in any other plantation sector/activity. 

Automatic 100%
MINING

  • Mining and Exploration of metal and non-metal ores
  • Coal & Lignite
  • Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities
Automatic 100%
PETROLEUM & NATURAL GAS

  • Exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas.
  • Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.
Automatic 100%
MANUFACTURING 

Manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on Principal to Principal or Principal to Agent basis. 

Automatic 100%
DEFENCE

Defence Industry subject to Industrial license under the Industries (Development & Regulation) Act, 1951 and Manufacturing of small arms and ammunition under the Arms Act, 1959 

Automatic up to 74% Government route beyond 74% wherever it is likely to result in access to modern technology or for other reasons to be recorded  100% 
1.BROADCASTING CARRIAGE SERVICES

  • Teleports(setting up of up-linking HUBs/Teleports);
  • Direct to Home (DTH); 
  • Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability); 
  • Mobile TV; 
  • Headend-in-the Sky Broadcasting Service(HITS);
  • Cable Networks

2.BROADCASTING CONTENT SERVICES 

  • Terrestrial Broadcasting FM (FM Radio)
  • Up-linking of ‘News & Current Affairs’ TV Channels
  • Uploading/Streaming of News & Current Affairs through Digital Media
  • Up-linking of Non- ‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels
Automatic

Government 

Government 

Government 

Government 

100%

49% 

49% 

26%

100%

PRINT MEDIA

  • Publishing of newspaper and periodicals dealing with news and current affairs
  • Publication of Indian editions of foreign magazines dealing with news and current affairs 
Government  26%
CIVIL AVIATION

1.AIRPORTS

  • Greenfield projects
  • Existing projects

2.AIR TRANSPORT SERVICES

  • Scheduled Air Transport Service*/ Domestic Scheduled Passenger Airline and Regional Air Transport Service
  • Non-Scheduled Air Transport Services
  • Helicopter services/seaplane services requiring DGCA approval 

3.OTHER SERVICES UNDER CIVIL AVIATION SECTOR

  • Ground Handling Services subject to sectoral regulations and security clearance 
  • Maintenance and Repair organizations; flying training institutes; and technical training institutions. 
Automatic

Automatic up to 49% (Automatic up to 100% for NRIs)

Government route beyond 49%

Automatic

Automatic

Automatic

Automatic

100%

100%

100%

100%

100%

100%

CONSTRUCTION DEVELOPMENT: TOWNSHIPS, HOUSING, BUILT-UP INFRASTRUCTURE

Construction-development projects (which would include development of townships, construction of residential/commercial premises, roads or bridges, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure, townships)

Automatic 100%
INDUSTRIAL PARKS

Industrial Parks -new and existing 

Automatic 100%
SATELLITES- ESTABLISHMENT AND OPERATION

Satellites- establishment and operation, subject to the sectoral guidelines of Department of Space/ISRO

Government  100%
PRIVATE SECURITY AGENCIES

Private Security Agencies 

Automatic up to 49% 

Government route beyond 49% and up to 74%

74%
TELECOM SERVICES

Telecom Services (including Telecom Infrastructure Providers Category-I) 

Automatic up to 49% 

Government route beyond 49%

100%
TRADING

  • Cash & Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs) 
  • E-commerce activities
  • Single Brand Product Retail Trading
  • Multi Brand Retail Trading 
  • Duty Free Shops 
Automatic

Automatic

Automatic

Government

Automatic

100%

100%

100%

51%

100%

RAILWAY INFRASTRUCTURE

Railway Infrastructure

Automatic 100%
ASSET RECONSTRUCTION COMPANIES 

Asset Reconstruction Company’ (ARC) means a company registered with the Reserve Bank of India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

Automatic 100%
BANKING- PRIVATE SECTOR

Banking- Private Sector 

Automatic up to 49% 

Government route beyond 49% and up to 74%.

74%
BANKING- PUBLIC SECTOR

Banking- Public Sector subject to Banking Companies (Acquisition & Transfer of Undertakings) Acts 1970/80. This ceiling (20%) is also applicable to the State Bank of India and its associate Banks.

Government 20%
CREDIT INFORMATION COMPANIES (CIC)

Credit Information Companies

Automatic 100%
INFRASTRUCTURE COMPANY IN THE SECURITIES MARKET

Infrastructure companies in Securities Markets, namely, stock exchanges, commodity exchanges, depositories and clearing corporations, in compliance with SEBI Regulations

Automatic 49%
INSURANCE 

  • Insurance Company
  • Intermediaries or Insurance Intermediaries including insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time.
Automatic

Government 

49%

100%

PENSION SECTOR

Pension Sector

Automatic 49%
POWER EXCHANGES

Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010.

Automatic 49%
WHITE LABEL ATM OPERATIONS

White Label ATM Operations 

Automatic 100%
OTHER FINANCIAL SERVICES

Financial Services activities regulated by financial sector regulators, viz., RBI, SEBI, IRDA, PFRDA, NHB or any other financial sector regulator as may be notified by the Government of India

Automatic 100%
PHARMACEUTICALS

  • Greenfield 
  • Brownfield 
Automatic

Automatic up to 74% 

Government route beyond 74%

100%

100%

For detailed information visit https://www.investindia.gov.in/

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