FDI Sector-specific policy for foreign investment

AGRICULTURE

Agriculture & Animal Husbandry
100% Automatic
Tea Plantation
100% Government
3 Mining
3.1
Mining and Exploration of metal and non-metal ores
100% Automatic

3.2
Coal and Lignite
100% Automatic
3.3 Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities
100% Government
Petroleum & Natural Gas
4.1 Exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product pipelines, natural gas/pipelines, LNG Reclassification infrastructure, market study and formulation and Petroleum refining in the private sector, subject to the existing sectoral policy and regulatory framework in the oil marketing sector and the policy of the Government on private participation in exploration of oil and the discovered fields of national oil companies
100% Automatic
4.2Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.
49% Government
MANUFACTURING SERVICES SECTOR INFORMATION SERVICES FINANCIAL SERVICES

Sl.No.

Sector/Activity

% of FDI Cap/Equity

Entry Route

Sl.No.

Sector/Activity

% of FDI Cap/Equity

Entry Route

5

Manufacture of items reserved for production in Micro and Small Enterprises.

5.1

FDI in MSEs (as defined under Micro, Small And Medium Enterprises Development Act, 2006 (MSMED, Act 2006)) will be subject to the sectorial caps, entry routes and other relevant sectorial regulations.

 

 

5.2

Any industrial undertaking which is not a Micro or Small Scale Enterprise, but manufactures items reserved for the MSE sector.

24%

Government

6

Defence

49%

Government

Sl.No.

Sector/Activity

% of FDI Cap/Equity

Entry Route

7

Broadcasting

7.1

Terrestrial Broadcasting FM (FM Radio)

26% (FDI, NRI & PIO investments and Portfolio investment)

Government

7.2

Cable Network

49% (FDI, NRI & PIO investments and Portfolio investment)

Automatic up to 49% Government route beyond 49% and up to 74%

7.3

Direct-to-Home

49% (FDI, NRI & PIO investments and Portfolio investment)

Automatic up to 49% Government route beyond 49% and up to 74%

7.4

Headend-In-The-Sky (HITS) Broadcasting Service

74% (Total direct and indirect foreign investment including portfolio and FDI)

Automatic up to 49% Government route beyond 49% and up to 74%

7.5

Setting up hardware facilities such as up-linking, HUB etc.

 

(1) Setting up of Up-linking HUB/ Teleports

49% (FDI & FII)

Government

(2) Up-linking a Non-News & Current Affairs TV Channel

100%

Government

(3) Up-linking a News & Current Affairs TV Channel

26% (FDI & FII)

Government

8

Print Media

 

8.1

Publishing of Newspaper and periodicals dealing with news and current affairs

26% (FDI and investment by NRIs/PIOs/FII)

Government

8.2

Publication of Indian editions of foreign magazines dealing with news and current affairs

26% (FDI and investment by NRIs/PIOs/FII)

Government

8.3

Publishing/printing of Scientific and Technical Magazines/specialty journals/ periodicals.

100%

Government

8.4

Publication of facsimile edition of foreign newspapers

100%

Government

9

Civil Aviation

9.1

Airports (a) Greenfield projects

100%

Automatic

(b) Existing projects

100%

Automatic up to 74% Government route beyond 74%

9.2

Air Transport Services

(1) Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline

49% FDI (100% for NRIs)

Automatic

(2) Non-Scheduled Air Transport Service

74% FDI (100% for NRIs)

Automatic up to 49% Government route beyond 49% and up to 74%

 

(3) Helicopter services/seaplane services requiring DGCA approval

100%

Automatic

9.3

Other services under Civil Aviation sector

 

(1) Ground Handling Services

74% FDI (100% for NRIs)

Automatic up to 49% Government route beyond 49% and up to 74%

 

(2) Maintenance and Repair organizations; flying training institutes; and technical training institutions

100%

Automatic

10

Courier services for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898 and excluding the activity relating to the distribution of letters.

100%

Government

11

Construction Development: Townships, Housing, Built-up infrastructure

100%

Automatic

12

Industrial Parks – new and existing

100%

Automatic

13

Satellites – Establishment and operation

74%

Government

14

Private Security Agencies

49%

Government

15

Telecom Services

15.1

Telecom Services

100%

Automatic up to 49% Government route beyond 49%

15.2

(a) ISP with gateways

100%

Automatic up to 49% Government route beyond 49%

(b) ISP’s not providing gateways

100%

Automatic up to 49% Government route beyond 49%

(c) Radio paging

100%

Automatic up to 49% Government route beyond 49%

(d) End-to-End bandwidth

100%


Automatic up to 49% Government route beyond 49%

15.3

(a) Infrastructure provider providing dark fibre, right of way, duct space, tower (IP Category I)

100%

Automatic up to 49% Government route beyond 49%

 

(b)Electronic Mail

100%

Automatic up to 49% Government route beyond 49%

 

(c) Voice Mail

100%

Automatic up to 49% Government route beyond 49%

16

Trading

 

16.1

Cash & Carry Wholesale Trading/ Wholesale Trading

100%

Automatic

16.2

E-commerce activities

100%

Automatic

16.3

Test marketing

100%

Government

16.4

Single Brand product retail trading

100%

Automatic up to 49% Government route beyond 49%

Sl.No.

Sector/Activity

% of FDI Cap/Equity

Entry Route

17

Asset Reconstruction Companies

100% of paid-up capital of ARC (FDI + FII/FPI)

Automatic up to 49% Government route beyond 49%

18

Banking – Private sector

74% including investment by FIIs

Automatic up to 49% Government route beyond 49% and up to 74%

19

Banking- Public Sector

20% (FDI and portfolio investment)

Government

20

Commodity Exchanges

49%

Government

21

Credit Information Companies (CIC)

74% (FDI + FII / RFPI)

Automatic

22

Infrastructure Company in the Securities Market

49%

Government

23

Insurance

29%

Automatic

24

Non-Banking Finance Companies (NBFC) 

100%

Automatic

25

Pharmaceuticals

25.1

Greenfield

100%

Automatic

25.2

Existing Companies

100%

Government