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Find Out In Which Sectors 100% FDI In India Is Allowed

Find Out In Which Sectors 100% FDI In India Is Allowed

There is no doubt that India has come a long way in terms of attracting foreign direct investment equity inflows into the country. Since the opening up of the economy in 1991, the government has taken several measures in order to attract more investments into the country. In this year’s financial budget, the Finance Minister Nirmala Sitaraman proposed a number of reforms in the current FDI norms with the aim of increasing the flow of FDI in India.

Foreign direct investment into sectors is permitted under two routes- Automatic or Government. Under the automatic route no prior approval is required from the government of India. However, under the government route, an approval from the government of India is required before commencing the investment process.

As an FDI agency, or more fittingly one of the best FDI facilitators in India, we make the entire process of overseas investment easy, which can otherwise be overwhelming. There are too many states and sectors to study and make an informed decision.

Find out in which sectors FDI in India is permitted under the two routes of approval.

100 per cent FDI in India under the Automatic Route

Agriculture & Animal Husbandry, Air-Transport Services (non-scheduled and other services under civil aviation sector), Airports (Greenfield + Brownfield), Asset Reconstruction Companies, Auto-components, Automobiles, Biotechnology (Greenfield), Broadcast Content Services (Up-linking & down-linking of TV channels, Broadcasting Carriage Services, Capital Goods, Cash & Carry Wholesale Trading (including sourcing from MSEs), Chemicals, Coal & Lignite, Construction Development, E-commerce Activities, Construction of Hospitals, Gems & Jewellery, Credit Information Companies, Duty Free Shops, Electronic Systems, Food Processing, Healthcare, Industrial Parks, IT & BPM, Leather, Manufacturing, Mining & Exploration of metals & non-metal ores, Other Financial Services, Services under Civil Aviation Services such as Maintenance & Repair Organizations, Petroleum & Natural gas, Pharmaceuticals, Plantation sector, Ports & Shipping, , Roads & Highways, Single Brand Retail Trading,  Railway Infrastructure, Renewable Energy, Textiles & Garments, Thermal Power, Tourism & Hospitality and White Label ATM Operations

UPTO 100 per cent under the Automatic Route

  • Infrastructure Company in the Securities Market – 49 per cent
  • Insurance – up to 49 per cent
  • Medical Devices – up to 100 per cent
  • Pension – 49 per cent
  • Petroleum Refining (By PSUs) – 49 per cent
  • Power Exchanges – 49 per cent

UPTO 100 per cent FDI under the Government Route

  • Banking & Public sector – 20 %
  • Broadcasting Content Services – 49 %
  • Core Investment Company – 100 %
  • Food Products Retail Trading – 100 %
  • Mining & Minerals partings of titanium containing minerals and ores, Its value addition and integrated activities – 100 %
  • Multi-Brand Retail Trading – 51 %
  • Print Media (publications/ printing of scientific and technical magazines/ specialty journals/ periodicals and facsimile edition of foreign newspapers) – 100 %
  • Print Media (publishing of newspaper, periodicals and Indian editions of foreign magazines dealing with news & current affairs) – 26 %
  • Satellite (Establishment and operations) – 100%

UPTO 100% FDI under Automatic and Government

  • Airport transport services (scheduled air transport services, regional air transport services) – up to 49% (auto) + above 49% (Govt.)
  • Banking (Private sector) – up to 49% (auto) + above 49% (Govt)
  • Biotechnology (brownfield) – up to 74% (auto) + above 74% (Govt)
  • Defence – up to 49% (auto) + above 49% (Govt)
  • Healthcare (Brownfield) – up to 74% (auto) + above 74% (Govt)
  • Pharmaceuticals (Brownfield) – up to 74% (auto) + above 74% (Govt)
  • Private Security Agencies – up to 74% (auto) + above 74% (Govt)
  • Telecom Services – up to 49% (auto) + above 49% (Govt)

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