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FDI Limits in Various Sectors in India

Last Updated : 16 Sep, 2022
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Indian Economy is a very important part of the General Awareness section of many government exams like SSC, Banking, Railways, and many others. This section has a huge weightage of marks as many questions are coming from this section. we will discuss one of the important topics of the Indian Economy i.e., “FDI Limits in Various Sectors in India”.

FDI Limits in Various Sectors in India :
 

Sector

 FDI     Limit 

Entry Route

Agriculture& Animal Husbandry 100% Automatic
Plantation Sector
(including tea, coffee, Rubber, Cardamom, Palm oil tree,
Olive oil tree plantations)
100% Automatic
Mining and Exploration of metal and non-metal ores 
(including diamond, gold, silver, and precious ores but excluding titanium-bearing minerals and their ores)
100% Automatic
Mining (Coal & Lignite) 100% Automatic
Mining
Mining and mineral separation of titanium-bearing minerals and ores, its value addition, and integrated activities
100% Government
Petroleum & Natural Gas
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, etc.
100% Automatic
Petroleum & Natural Gas
Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.
49% Automatic
Defense Manufacturing 100% Automatic up to 49% Above 49% under Government route in cases resulting in access to modern technology in the country
Broadcasting
• Teleports(setting up of up-linking HUBs/Teleports)
• Direct to Home (DTH)
• Cable Networks (Multi System operators (MSOs) operating at the National State or District level and    undertaking upgradation of networks towards digitalization and addressability
• Mobile TV
• Head end-in-the Sky Broadcasting Service(HITS)
100% Automatic
Broadcasting
Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))
100% Automatic
Broadcasting Content Services
• Terrestrial Broadcasting FM(FM Radio)
• Up-linking of ‘News & Current Affairs’ TV Channels
49% Government
Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels 100%  Automatic
Print Media
• Publishing of newspapers and periodicals dealing with news and current affairs
• Publication of Indian editions of foreign magazines dealing with news and current affairs
26% Government
Publishing/printing of scientific and technical magazines/specialty journals/ periodicals, subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by the Ministry of Information and Broadcasting. 100%  Government
Publication of facsimile editions of foreign newspapers 100%  Government
Civil Aviation – Airports
Green Field Projects & Existing Projects
100% Automatic
Civil Aviation – Air Transport Services
• Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline
• Regional Air Transport Service
(Foreign Airlines are barred from Investing in Air India)
100% Automatic up to 49% Above 49% under the Government route
100% Automatic for NRIs
Civil Aviation
• Non-Scheduled Air Transport Service
• Helicopter services/seaplane services requiring DGCA approval
• Ground Handling Services subject to sectoral regulations and security clearance
• Maintenance and Repair organizations; flying training institutes; and technical training institutions
100% Automatic
Construction Development: Townships, Housing, Built-up Infrastructure 100% Automatic
Industrial Parks (new & existing) 100% Automatic
Satellites- establishment and operation, subject to the sectoral guidelines of the Department of Space/ISRO 100% Government
Private Security Agencies 74% Automatic up to 49% Above 49% & up to 74% under the Government route
Telecom Services 100% Automatic up to 49% Above 49% under the Government route
Cash & Carry Wholesale Trading 100% Automatic
E-commerce activities (e-commerce entities would engage only in Business to Business (B2B) e-commerce and not in Business to Consumer (B2C) e-commerce.) 100% Automatic
Single Brand retail trading
Local sourcing norms will be relaxed up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
100% Automatic up to 49% Above 49% under the Government route
Multi Brand Retail Trading 51% Government
Duty-Free Shops 100% Automatic
Railway Infrastructure
Construction, operation, and maintenance of the following
• Suburban corridor projects through PPP
• High-speed train projects
• Dedicated freight lines
• Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities
• Railway Electrification
• Signaling systems
• Freight terminals
• Passenger terminals
• Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to the main railway line
• Mass Rapid Transport Systems.
100% Automatic
Asset Reconstruction Companies 100% Automatic
Banking- Private Sector 74% Automatic up to 49% Above 49% & up to 74% under the Government route
Banking- Public Sector 20% Government
Credit Information Companies (CIC) 100% Automatic
Infrastructure Company in the Securities Market 49% Automatic
Insurance
• Insurance Company
• Insurance Brokers
• Third Party Administrators
• Surveyors and Loss Assessors
• Other Insurance Intermediaries
49% Automatic
Pension Sector 49% Automatic
Power Exchanges 49% Automatic
White Label ATM Operations 100% Automatic
Financial services activities regulated by RBI, SEBI, IRDA, or any other regulator 100% Automatic
Pharmaceuticals(Green Field) 100% Automatic
Pharmaceuticals(Brown Field) 100% Automatic up to 74% Above 74% under
Government route
Food products manufactured or produced in India
Trading, including through e-commerce, in respect of food products manufactured or produced in India.
100% Government

Some Prohibited Sectors:

  • Lottery Business including Government/private lottery, online lotteries, etc.
     
  • Gambling and Betting including casinos etc.
     
  • Chit funds
     
  • Nidhi company
     
  • Trading in Transferable Development Rights (TDR)
     
  • Real Estate Business or Construction of Farm Houses (Real estate business does not include development of townships, construction of residential /commercial premises, roads, or bridges )
     
  • Manufacturing of cigars, cheroots, cigarillos, and cigarettes, of tobacco or of tobacco substitutes
     


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