|
Sr.
No.
|
Sector/Activity
|
FDI Cap /
Equity
|
Entry
Route
|
Other conditions
|
|
I
|
AGRICULTURE
|
|
1.
|
Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aqua-culture and Cultivation of Vegetables & Mushrooms under controlled conditions and services related to agro and allied sectors.
Note: Besides the above, FDI is not allowed in any other agricultural sector/activity
|
100%
|
Automatic
|
|
|
2.
|
Tea Sector,
including tea
plantation
Note: Besides the above, FDI is not allowed in any other plantation sector/activity
|
100%
|
FIPB
|
Subject to divestment of 26% equity in favour of Indian partner/Indian public within 5 years and prior approval of State Government concerned in case of any change in future land use.
|
|
II
|
INDUSTRY
|
|
II A
|
MINING
|
|
3.
|
Mining covering
exploration and
mining of diamonds
& precious stones;
gold, silver and
minerals.
|
100%
|
Automatic
|
Subject to Mines & Minerals (Development & Regulation) Act, 1957 www.mines.nic.in
Press Note 18 (1998) and Press Note 1 (2005) are not applicable for setting up 100% owned subsidiaries in so far as the mining sector is concerned, subject to a declaration from the applicant that he has no existing joint venture for the same area and /or the particular mineral.
|
|
4.
|
Coal & Lignite
mining for captive
consumption by
power projects,
and iron & steel, cement production and other eligible activities permitted under the Coal Mines
(Nationalisation) Act, 1973.
|
100%
|
Automatic
|
Subject to provisions of Coal Mines
(Nationalization) Act, 1973
www.coal.nic.in
|
|
5.
|
Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities .
Note : FDI will not be allowed in mining of “prescribed substances” listed in Government of India notification No. S.O. 61(E) dt. 18.1.2006 issued by the Department of Atomic Energy under the Atomic Energy Act, 1962.
|
100%
|
FIPB
|
Subject to sectoral regulations and the Mines and Minerals (Development & Regulation) Act, 1957 and the following conditions-
i. value addition facilities are set up within India along with transfer of technology;
ii. disposal of tailing during the mineral separation shall be carried out in accordance with regulations framed by the Atomic Energy Regulatory Board such Atomic Energy (Radiation Protection) Rules 2004 and the Atomic Energy (Safe Disposal of Radioactive Wastes) Rules 1987.
|
|
II B
|
MANUFACTURING
|
|
6.
|
Alcohol-
Distillation &
Brewing
|
100%
|
Automatic
|
Subject to license by appropriate authority
|
|
7.
|
Cigars &
Cigarettes-
Manufacture
|
100%
|
FIPB
|
Subject to industrial license under the Industries (Development & Regulation) Act, 1951
|
|
8.
|
Coffee& Rubber
processing &
warehousing
|
100%
|
Automatic
|
|
|
9.
|
Defence
production
|
26%
|
FIPB
|
Subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition.
|
|
10.
|
Hazardous
chemicals, viz.,
hydrocyanic acid
and its derivatives;
phosgene and its
derivatives; and
isocyanates and diisocyantes of hydrocarbon.
|
100%
|
Automatic
|
Subject to industrial license under the Industries (Development & Regulation) Act, 1951 and other sectoral regulations.
|
|
11.
|
Industrial
explosives -
Manufacture
|
100%
|
Automatic
|
Subject to industrial license under Industries (Development & Regulation) Act, 1951 and regulations under Explosives Act, 1898
|
|
12.
|
Drugs & Pharmaceuticals including those involving use of recombinant DNA technology
|
100%
|
Automatic
|
|
|
II C
|
POWER
|
|
13.
|
Power including
generation
(except Atomic
energy);
transmission, distribution and
Power Trading.
|
100%
|
Automatic
|
Subject to provisions of the Electricity Act, 2003 www.powermin.nic.in
|
|
III
|
SERVICES
|
|
14.
|
CIVIL AVIATION SECTOR
|
|
(i)
|
Airports-
|
|
a.
|
Greenfield projects
|
100%
|
Automatic
|
Subject to sectoral regulations notified by Ministry of Civil Aviation www civilaviation.nic. in
|
|
b.
|
Existing projects
|
100%
|
FIPB
beyond
74%
|
Subject to sectoral regulations notified by Ministry of Civil Aviation www.civilaviation.nic. in
|
|
(ii)
|
Air Transport Services including Domestic Scheduled Passenger Airlines; Non-Schedules Airlines; Chartered Airlines; Cargo Airlines; Helicopter and Seaplane Services
|
|
c.
|
Scheduled Air Transport
Services/ Domestic Scheduled Passenger Airline
|
49%- FDI;
100%- for
NRI
investment
|
Automatic
|
Subject to no direct or indirect participation by foreign airlines and sectoral regulations..
|
|
d.
|
Non-Scheduled Air Transport Service/ Non-Scheduled airlines, Chartered airlines, and Cargo airlines
|
74%- FDI
100%- for NRIs investment
|
Automatic
|
Subject to no direct or indirect participation by foreign airlines in Non-Scheduled and Chartered airlines. Foreign airlines are allowed to participate in the equity of companies operating Cargo airlines. Also subject to sectoral regulations.
|
|
e.
|
Helicopter Services/Seaplane services requiring DGCA approval
|
100%
|
Automatic
|
Foreign airlines are allowed to participate in the equity of companies operating Helicopter and seaplane airlines. Also subject to sectoral regulations.
|
|
(iii)
|
Other services under Civil Aviation Sector
|
|
f.
|
Ground Handling Services
|
74%- FDI
100%- for NRIs investment
|
Automatic
|
Subject to sectoral regulations and security clearance.
|
|
g.
|
Maintenance and Repair organizations; flying training institutes; and technical training institutions
|
100%
|
Automatic
|
|
|
15.
|
Asset
Reconstruction
Companies
|
49%
(only
FDI)
|
FIPB
|
Where any individual investment exceeds 10% of the equity, provisions of Section 3(3)(f) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should be complied with. www.finmin.nic.in
|
|
16.
|
Banking -
Private sector
|
74%
(FDI+FII)
|
Automatic
|
Subject to guidelines for setting up branches / subsidiaries of foreign banks issued by RBI. www.rbi.org.in
|
|
17.
|
Broadcasting
|
|
a.
|
FM Radio
|
FDI +FII
investment
up to 20%
|
FIPB
|
Subject to Guidelines notified by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
b.
|
Cable network
|
49%
(FDI+FII)
|
FIPB
|
Subject to Cable Television Network Rules (1994) Notified by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
c.
|
Direct-To-Home
|
49%
(FDI+FII).
Within this
limit, FDI
component not to exceed
20%
|
FIPB
|
Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
d.
|
Setting up
hardware facilities
such as up-linking,
HUB, etc
|
49%
(FDI+FII)
|
FIPB
|
Subject to Up-linking Policy notified by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
e.
|
Up-linking a News
& Current Affairs
TV Channel
|
26%
FDI+FII
|
FIPB
|
Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
f.
|
Up-linking a Non-
news & Current
Affairs TV
Channel
|
100%
|
FIPB
|
Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
18.
|
Commodity Exchanges
|
49% (FDI+FII)
Investment by Registered FII under PIS will be limited to 23% and
Investment under FDI Scheme limited to 26%.
|
FIPB
|
FII purchases shall be restricted to secondary market only.
No foreign investor/entity, including persons acting in concert, will hold more than 5% of the equity in these companies.
|
|
19.
|
Construction
Development
projects, including
housing,
commercial
premises, resorts,
educational
institutions,
recreational
facilities, city
and regional
level infrastructure,
townships.
Note:: FDI is not allowed in Real Estate Business
|
100%
|
Automatic
|
Subject to conditions notified vide Press Note 2
(2005 Series) including:
a. minimum capitalization of US$ 10 million for
wholly owned subsidiaries and US$ 5 million for joint venture. The funds would have to be brought within six months of commencement of business of the Company.
b. Minimum area to be developed under each project- 10 hectares in case of development of serviced housing plots; and built-up area of 50,000 sq. mts. in case of construction development project; and any of the above in case of a combination project.
[Note 1: For investment by NRIs, the conditions mentioned in Press Note 2 / 2005 are not applicable.
Note 2: For investment in SEZs, Hotels & Hospitals, conditions mentioned in Press Note 2(2005) are not applicable]
|
|
20.
|
Courier services
for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898.
|
100%
|
FIPB
|
Subject to existing laws and exclusion of activity relating to distribution of letters, which is exclusively reserved for the State. www.indiapost.gov.in
|
|
21.
|
Credit Information Companies
|
49 % (FDI+FII)
Investment by Registered FII under PIS will be limited to 24% only in the CICs listed at the Stock Exchanges within the overall limit of 49% foreign investment.
|
FIPB
|
Foreign Investment in CIC will be subject to Credit Information Companies (Regulation) Act, 2005.
FII investment will be subject to the conditions that:
(a) No single entity should directly or indirectly hold more than 10% equity
(b) Any acquisition in excess of 1% will have to be reported to RBI as a reporting requirement; and
(c) FIIs investing in CICs shall not seek a representation on the Board of Directors based upon their shareholding.
|
|
22.
|
Industrial Parks both setting up and in established Industrial Parks
|
100%
|
Automatic
|
Conditions in Press Note 2(2005) applicable for construction development projects would not apply provided the Industrial Parks meet with the under-mentioned conditions-
i. it would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area;
ii. the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area.
|
|
23
|
Insurance
|
26%
|
Automatic
|
Subject to licensing by the Insurance Regulatory & Development Authority
www.irda.nic.in
|
|
24.
|
Investing
companies in
infrastructure /
services sector
(except telecom
sector)
|
100%
|
FIPB
|
Where there is a prescribed cap for foreign investment, only the direct investment will be considered for the prescribed cap and foreign investment in an investing company will not be set off against this cap provided the foreign direct investment in such investing company does not exceed 49% and the management of the investing company is with the Indian owners.
|
|
25.
|
Non Banking Finance Companies
|
|
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
xvi)
xvii)
xviii)
|
Merchant
Banking
Underwriting
Portfolio
Management
Services
Investment
Advisory
Services
Financial
Consultancy
Stock Broking
Asset
Management
Venture Capital
Custodial
Services
Factoring
Credit Rating
Agencies
Financial Leasing & Hire Purchase
Finance
Housing
Finance
Forex Broking
Credit card
Business
Money
changing
business
Micro credit
Rural credit
|
100%
|
Automatic
|
Subject to:
a. minimum capitalization norms for fund based NBFCs - US$ 0.5 million to be brought upfront for FDI up to 51%; US$ 5 million to be brought upfront for FDI above 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months for FDI beyond 75% and up to 100%.
b. minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million.
c. foreign investors can set up 100% operating subsidiaries without the condition to disinvest a minimum of 25% of its equity to Indian entities subject to bringing in US$ 50 million without any restriction on number of operating subsidiaries without bringing additional capital.
d. joint venture operating NBFC’s that have 75% or less than 75% foreign investment will also be allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow.
e. compliance with the guidelines of the RBI.
f. The minimum capitalization norms would apply would be applicable where the foreign holding in a NBFC(both direct and indirect) exceeds the limits indicated at (a) above
g. The capital for the purpose of minimum capitalization norms shall consist of ordinary shares only.
|
|
26.
|
Petroleum & Natural Gas sector
|
|
a.
|
Refining
|
49% in
case of
PSUs
100% in
case of
Private
companies
|
FIPB
(in case of
PSUs)
Automatic
(in case of
private
companies)
|
Subject to Sectoral policy
www.petroleum.nic.in and no divestment or dilution of domestic equity in the existing PSUs.
|
|
b.
|
Other than
Refining and
including market
study and
formulation;
investment/
financing; setting
up infrastructure
for marketing in
Petroleum &
Natural Gas
sector.
|
100%
|
Automatic
|
Subject to sectoral regulations issued by Ministry of Petroleum & Natural Gas
www.petroleum.nic.in
|
|
27.
|
Print Media
|
|
a.
|
Publishing of
newspaper and
periodicals
dealing with
news and current affairs
|
26%
|
FIPB
|
Subject to Guidelines notified by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
b.
|
Publishing of
scientific
magazines/
specialty
journals/
periodicals
|
100%
|
FIPB
|
Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in
|
|
28.
|
Telecommunications
|
|
a.
|
Basic and
cellular, Unified
Access Services,
National/
International
Long Distance,
V-Sat, Public
Mobile Radio
Trunked
Services
(PMRTS),
Global Mobile
Personal
Communications
Services
(GMPCS) and
other value
added telecom
services
|
74%
(Including
FDI, FII,
NRI,
FCCBs,
ADRs,
GDRs,
convertible
preference
shares, and
proportio-
nate
foreign
equity in
Indian
promoters/
Investing
Company)
|
Automatic
up to
49%.
FIPB
beyond
49%.
|
Subject to guidelines notified in the PN 3(2007)
|
|
b.
|
ISP with
gateways, radio-
paging, end-to-
end bandwidth.
|
74%
|
Automatic
up to 49%.
FIPB
beyond
49%.
|
Subject to licensing and security requirements notified by the Dept. of Telecommunications.
www.dotindia.com
|
|
c.
|
(a) ISP without
gateway,
(b) infrastructure
provider
providing dark
fibre, right of way,duct space,tower (Category I);
(c) electronic
mail and voice
mail
|
100%
|
Automatic
up to 49%.
FIPB
beyond
49%.
|
Subject to the condition that such companies shall divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Also subject to licensing and security requirements, where required.
www.dotindia.com
|
|
d.
|
Manufacture of
telecom
equipments
|
100%
|
Automatic
|
Subject to sectoral requirements.
www.dotindia.com
|
|
29.
|
Trading
|
|
a.
b.
c.
d.
e.
|
Wholesale/cash
& carry trading
Trading for
exports
Trading of items
sourced from small scale sector
Test marketing
of such items for which a company has approval for manufacture
Single Brand
product retailing
|
100%
100%
100%
100%
51%
|
Automatic
Automatic
FIPB
FIPB
FIPB
|
Subject to the condition that the test marketing approval will be for a period of two years and I nvestment in setting up manufacturing facilities comomences simultaneously with test marketing.
Subject to guidelines for FDI in trading issued by Department of Industrial Policy & Promotion vide
Press Note 3 (2006 Series).
|
|
30.
|
Satellites -
Establishment
and operation
|
74%
|
FIPB
|
Subject to Sectoral guidelines issued by Department of Space/ISRO
www.isro.org
|
|
31.
|
Special
Economic Zones
and Free Trade
Warehousing
Zones covering
setting up of these Zones and setting up units in the Zones
|
100%
|
Automatic
|
Subject to Special Economic Zones Act, 2005 and the Foreign Trade Policy.
www.sezindia.nic.in
|
|
|
|
|
|
|
|
|
|
|
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