FDI Policy

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HOME Direct Investment Policy of India
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INITIATIVES
FDI ENTRY ROUTES
01 FDI INTOinto
Entry Routes
Experience India Centre
INDIA
INDIA

02 Sector SpeciEc Condition for FDI

Atmanirbhar Niveshak Mitra
Investment
Bonded Manufacturing
03 Prohibited Sectors
climate in India has improved
considerably
Financial
04
Investors Initiative since the opening up of the
Procedures for Government Approval
India Industrial Land Bank
economy05 inRequirements
FDI Reporting
India Investment Grid
1991.
National
This Stakeholders
is06primarily
Single Window
attributed
System
to ease in FDI rules in India. India, today is a part of the top 100
clubsDistrict
One on Ease One
ofProduct
Doing Business (EoDB). FDI in<ows in India stood at $45.14 Bn in 2014-15
and Investor
PIO have consistently
Helpdesk increased since then.
Project Monitoring Group
Total FDI in<ows in theFDI
FIFP country
Policyin the last FDI
24 years
FAQS (Apr 2000 to June 2024) are $1,013.4 Bn
Startup India Hub
while the total FDI inLows received in the last 10 years (Apr 2014 to Jun 2024) was $689.88
The Indian Unicorn Landscape
Bn which amounts to nearly 67% of total FDI inLow in last 24 years.
OPPORTUNITIES
HAVE A QUERY ?
In FY
All 2014-15, FDI inLow in India stood at mere $45.14 Bn, which increased to $60.22 Bn in
Sectors
2016-17 and
Agriculture & further to the highest ever annual FDI inLow of $84.83 Bn reported during the
Allied Sector
FY 2021-22.
Animal Husbandry and Dairying
Dairy
Total FDI inLows in the country in the FY 2023-24 is $70.95 Bn and total FDI equity inLows
Auto Components
stands at $44.42 Bn.
Automobile
Mauritius
Electric(25%), Singapore (23%), USA (9%), Netherland (7%) and Japan (6%) emerge as top
Mobility
5 countries for FDI equity inLows into India FY 2023-24.
Aviation
Ayush

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 Top 5– sectors
BFSI Fintech receiving highest FDI Equity InLow during FY 2023-24 are Services Sector
(Finance,
BFSI - Banking
Banking, Insurance, Non Fin/ Business, Outsourcing, R&D, Courier, Tech. Testing
and -Analysis,
BFSI Insurance Other) (16%), Computer Software & Hardware (15%), Trading (6%),
Telecommunications (6%) and Automobile Industry (5%).
Biotechnology
Capital Goods
Top 5 States receiving highest FDI Equity InLow during FY 2023-24 are Maharashtra (30%),
Chemicals
Karnataka (22%), Gujarat (17%), Delhi (13%), and Tamil Nadu (5%).
Construction
Consumer Goods
CATEGORY 1 CATEGORY 2 CATEGORY 3
Furniture
Personal Care and Hygiene UPTO UPTO

100%
Toys Manufacturing
Consumer Durables
100% 100%
FDI Permitted through FDI Permitted through FDI Permitted through
Defence Manufacturing
Automatic Route Government Route Government + Automatic
Electronic Systems Route
Electronic Components Manufacturing
Semiconductor and Display Manufacturing
Fisheries
Automatic & Aquaculture
Route
Food Processing
Under
Fruits
the&Automatic
Vegetables
Route, the non-resident investor or the Indian company does not
require any approval from Government of India for the investment.
Healthcare
IT & BPM
Government Route
Leather and Footwear
Media
Under the Government Route, prior to investment, approval from the Government of India is
Gaming
required. Proposals for foreign direct investment under Government route, are considered by
Medical Devices
respective Administrative Ministry/ Department.
Metals & Mining
For
Oil &detailed
Gas defnitions, clarifcations/ exceptions, please refer to:
Paper & Packaging
CONSOLIDATED FDI POLICY HAVE A QUERY?
Pharmaceuticals
Ports & Shipping
Railways
Renewable Energy

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 Retail & E-commerce
E-Commerce
Food Retail
SECTOR SPECIFIC CONDITION FOR FDI
Roads & Highways
Sustainability
FILTER FILTER
Telecom BY BY
SECTO R S R O U TES
Textiles & Apparel
Search
All Sectors All Routes
Handlooms & Handicrafts
Man-made Fibres
Thermal Power
SECTOR
Tourism & Hospitality AUTOMATIC GOVERNMENT
All States
[ UT ]
Air Transport
Andaman and Nicobar Islands Services (non-
Andhra Pradesh scheduled and other services 100%
under civil aviation sector)
Arunachal Pradesh
Assam
Bihar
[ UT ]
Chandigarh 100
Chhattisgarh VISIT SECTOR
FDI Permitted
[ UT ]
Dadra and Nagar Haveli and Daman and Diu
[ UT ]
Delhi
Goa
Main condition: 1. Non-Scheduled Air Transport Services
Gujarat
2. Helicopter services/seaplane services requiring DGCA approval
Haryana
Himachal
Other Pradesh
condition: (a) Air Transport Services would include Domestic Scheduled
[ UT ]
Jammu & Kashmir Passenger Airlines; Non-Scheduled Air Transport Services, helicopter
Jharkhand and seaplane services.

Karnataka (b) Foreign airlines are allowed to participate in the equity of companies
Kerala operating Cargo airlines, helicopter and seaplane services, as per the
[ UT ] limits and entry routes mentioned above.
Ladakh
[ UT ]
Lakshadweep Islands(c) Foreign airlines are also allowed to invest in the capital of Indian
Madhya Pradesh companies, operating scheduled and non-scheduled air transport

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 Maharashtra services, up to the limit of 49% of their paid-up capital. Such investment

Manipur would be subject to the following conditions:

Meghalaya (i) It would be made under the Government approval route.

Mizoram
(ii) The 49% limit will subsume FDI and FII/FPI investment.
Nagaland
Odisha (iii) The investments so made would need to comply with the relevant
[ UT ] regulations of SEBI, such as the Issue of Capital and Disclosure
Puducherry
Requirements (ICDR) Regulations/Substantial Acquisition of Shares and
Punjab
Takeovers (SAST) Regulations, as well as other applicable rules and
Rajasthan regulations.
Sikkim
(iv) A Scheduled Operator’s Permit can be granted only to a company:
Tamil Nadu
Telangana iv.a) that is registered and has its principal place of business within
India;
Tripura
Uttar Pradesh iv.b) the Chairman and at least two-thirds of the Directors of which are
Uttarakhand
West
Note: Bengal
COUNTRY DESKS
(i) All the information pertaining to the sectors as stated above, is in line with the extant
Australia
Consolidated Foreign Direct Investment (FDI) Policy issued by DPIIT as amended from time
Canada
to time.
China
France
(ii) In sectors/ activities not listed above, FDI is permitted up to 100% on the automatic route,
Germany
subject to applicable laws/regulations; security and other conditionalities.
Israel
(iii) A non-resident entity can invest in India, subject to the FDI Policy except in those
Italy
sectors/activities which are prohibited. However, an entity of a country, which shares a land
Japan Plus
border with India or where the benefcial owner of investment into India is situated in or is a
Korea Plus
citizen of any such country, can invest only under the Government route. Further, a citizen of
Russia Plus
Pakistan or an entity incorporated in Pakistan can invest, only under the Government route,
Saudi Arabia
in sectors/activities other than defense, space, atomic energy and sectors/activities
Sweden
prohibited for foreign investment. Please refer press note 3.
Taiwan Plus
United Arab Emirates
For detailed defnitions, clarifcations/ exceptions, please refer to Consolidated FDI Policy
United Kingdom

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 United States
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 Lottery Business
including Gambling and
Government/private Betting including
lottery, online casinos*
lotteries, etc.*

Chit Funds Nidhi Company

Trading in Real Estate

Transferable Business or
Development Rights Construction of
(TDR) farm houses**

Sectors not open to

private sector
Manufacturing of investment- atomic
cigars, cheroots, energy, railway
cigarillos and operations (other
cigarettes, of than permitted
tobacco or of activities mentioned
tobacco substitutes under the
Consolidated FDI
policy)

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 *Foreign technology collaboration in any form including licensing for franchise, trademark,
brand name, or management contract is also prohibited for Lottery Business and Gambling
and Betting activities

**Real estate business shall not include the development of townships, construction of
residential/ commercial premises, roads or bridges and Real Estate Investment Trusts
(REITs) registered and regulated under the SEBI (REITs) Regulations, 2014

PROCEDURES FOR GOVERNMENT APPROVAL

Filing of Application
Proposal for foreign investment, along with supporting documents to be fled
online, on the Foreign Investment Facilitation Portal, at the following url:
www.ffp.gov.in/

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 Internal Procedure for Approvals
DPIIT will identify the concerned Ministry/ Department and thereafter, circulate
the proposal within 2 days. In addition, once the proposal is received, the same
would also be circulated online to the RBI within 2 days for comments from
FEMA perspective.

Proposed investments from Pakistan and Bangladesh would also require

clearance from the Ministry of Home Affairs.

DPIIT would be required to provide its comments within 4 weeks from receipt
of an online application, & Ministry of Home Affairs (if applicable) to provide
comments within 6 weeks.

Pursuant to the above, additional information/ clarifcations may be asked

from the applicant which is to be provided within 1 week.

Proposals involving FDI exceeding INR 50bn (approx. $ 775 mn) shall be
placed before the Cabinet Committee of Economic Affairs.

Final Approval
Once the proposal is complete in all respects, the same gets approved
within 8-10 weeks.

FDI REPORTING REQUIREMENTS

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 Documents for Form FC-GPR (Foreign Currency - Gross
Provisional Return) SMF

CS Certifcate

Declaration by the Authorised Representative of the Indian Company/LLP

Pre and post shareholding pattern in the Indian company

Copy of government approval (if applicable)

Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation
(if applicable)

RBI approval on the amount of refund with respect to the amount of the issue (if
applicable)

Valuation certifcate

Approval letter (if non-compliant with the guidelines – if applicable)

Relevant RBI approvals for an issue of equity shares against funds payable to the
foreign investor

FIRC/ Debit statement

Know Your Customer (KYC)

Board Resolution

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 Note:

As per the RBI notifcation on “Foreign Investment in India - Reporting in Single Master Form”
of 7th June 2018, now provides for all the extant reporting structures of various types of
foreign investments in India are now provided under a Single Master Form (SMF) which is
required to be fled online.

As per the RBI Notifcation ARF and FC-GPR is merged into a single revised FC-GPR (SMF).
All new flings for the Form FC-GPR (SMF) have to be done in Single Master Form only.

STAKEHOLDERS

Invest India Foreign Investment Facilitation Board

Department of Defence Production, Ministry of Defence Ministry of Home Affairs

Ministry of Information and Broadcasting Ministry of Civil Aviation

Department of Space Department of Telecommunications

Department for Promotion of Industry & Internal Trade

Department of Economic Affairs Department of Financial Services

Department of Pharmaceuticals Ministry of Mines

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This page has been last updated on - Oct 17, 2024

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