Other sectors

Infrastructure

Sector Ownership Limit Entry Route Remarks

Power

100%

Automatic

Includes generation (except nuclear power where FDI is prohibited), transmission and distribution of power

Telecom

 

 

 

Basic, cellular and value-added services

74%

 

 

ISP with gateways

74%

FIPB beyond 49%

 

ISP without gateways

100%

FIPB beyond 49%

 

Email, Voice mail

100%

FIPB beyond 49%

Subject to licensing and security requirements; FDI cap of 74% for global mobile personal communications by satellite

Radio Paging

74%

FIPB beyond 49%

 

End-to-End Bandwidth

74%

FIPB beyond 49%

 

Infrastructure Providers providing Dark Fibre

100%

FIPB beyond 49%

 

Telecom Manufacturing

100%

Automatic

 

Roads

100%

Automatic

Includes construction and maintenance of roads, highways, bridges and tunnels

Ports

100%

Automatic

Applies to construction and maintenance of ports

Civil Aviation

 

 

 

Airports

100%

FIPB beyond 74%

100% FDI under automatic route is permissible for greenfield airports.

Domestic Airlines

49%

Automatic

Subject to no direct or indirect equity participation by foreign airlines. FDI up to 100% allowed for NRIs

Petroleum & Natural Gas

 

 

 

Petroleum refinery

100%

Automatic

 

Petroleum product pipelines

100%

Automatic

 

Petroleum product marketing

100%

Automatic

Subject to divestment of 26% equity in favour of the Indian partner / public within 5 years.

Petroleum refining-PSUs

26%

FIPB

 

Others

 

 

 

Mass Rapid Transport System

100%

Automatic

Includes associated real estate development in all metropolitan cities

EOU/SEZ/Industrial park construction

100%

Automatic

Subject to SEZ Act 2005 and Foreign Trade Policy.

Satellite establishment and operation

74%

FIPB

 

 

Services

Sector Ownership Limit Entry Route Remarks

Banking

 

 

 

Indian Private Banks

74%

Automatic

Foreign banks can take an equity stake of more than 5% (up to 74%) only in the private sector banks which have been identified by the RBI for restructuring

PSU Banks

20%

 

Subject to compliance with RBI guidelines

NBFCs

100%

Automatic

Includes 19 specified activities; Subject to minimum capitalisation norms and compliance with RBI guidelines

Insurance

26%

Automatic

Includes both Life and Non-Life Insurance; Subject to licence from Insurance Regulatory & Development Authority

Real estate and construction

 

 

Subject to minimum land area of 10 hectare for serviced housing plot and built-up area of 50,000 sq. mts. for construction development projects. Also minimum capitalisation and completion norms

Townships

100%

Automatic

Housing

100%

Automatic

Construction – Development Projects

100%

Automatic

Build-up Infrastructure

100%

Automatic

Trading

 

 

 

Retail Trade

51%

FIPB

Only for single brand products

Trading (Export House, Super Trading House, Star Trading House)

51%

Automatic

 

Trading (Export, Cash and Carry Wholesale)

100%

FIPB

 

Tourism

 

 

 

Hotels, restaurants, beach resorts

100%

Automatic

Includes facilities for providing accommodation and food services

Tour and travel agencies

100%

Automatic

 

Broadcasting

 

 

 

TV software production

100%

 

Subject to maximum foreign equity up to 49% including FDI/NRI/FII

Hardware facilities - (Uplinking, HUB, etc.)

49%

 

Subject to maximum foreign equity up to 49% including FDI/NRI/FII; FDI in news and current affairs channels which uplink from India is capped at 26%

Cable network

49%

 

Subject to maximum foreign equity up to 49% including FDI/NRI/FII

DTH

20%

 

Subject to maximum foreign equity upto 49% including FDI/NRI/FII. FDI not to exceed 20%

Terrestrial Broadcast FM

20%

 

Subject to licensee being a company registered in India under the Companies Act, 1956

Terrestrial TV Broadcast

Not Permitted

 

 

Print Media

 

 

 

Scientific/Technical journals

100%

 

 

Other non-news/non-current affairs/specialty publications

74%

 

 

Newspapers, Periodicals dealing with news and current affairs

26%

 

 

Other Services

 

 

 

Advertising and Film

100%

Automatic

Includes all film related activities

Courier services

100%

FIPB

Includes all postal services except the distribution of letters

Defence and Strategic Industries

26%

FIPB

Subject to security and licensing requirement; to be sold primarily to the Ministry of Defence

R&D activities

100%

Automatic

 

 

 

 

 

 

Manufacturing

Sector Ownership Limit Entry Route Remarks

Metals

100%

Automatic

Includes manufacture of Steel, Aluminium etc.

Textiles and Garments

100%

Automatic

 

Electronics Hardware

100%

Automatic

 

Chemicals and Plastics

100%

Automatic

Includes plastics

Automobiles

100%

Automatic

Includes Two -wheelers, Cars and Commercial Vehicles

Auto Components

100%

Automatic

 

Gems and Jewellery

100%

Automatic

 

Food and Agro Products

 

 

 

Food Processing

100%

Automatic

 

Agriculture (including contract farming)

Not Permitted

-

 

Plantations (except Tea)

Not Permitted

-

 

Other Manufacturing

 

 

 

Items reserved for Small Scale

24%

Automatic

100% FDI permitted through FIPB route subject to undertaking of export obligation of 50%

 

Resources Based Sectors

Sector Ownership Limit Entry Route Remarks

Coal and Lignite

 

 

 

Coal Processing

100%

Automatic up to 50%

 

Captive Coal mining

100%

Automatic

Subject to provision of Coal Mines (Nationalisation) Act 1973.

Other Mining and Quarrying

 

 

 

Mineral Ores

100%

Automatic

Including Gold, Silver and other mineral ores

Diamonds and precious stones

100%

Automatic

 

Atomic Minerals

74%

FIPB

Includes only mining, mineral separation and subsequent value addition

Oil and Natural Gas Exploration

100%

Automatic

 

 

Knowledge Economy

Sector Ownership Limit Entry Route Remarks

Pharma and Biotech

100%

Automatic

FIPB route is needed if industrial licence is required or involves recombinant DNA technology, cell/tissue formulations

Healthcare

100%

Automatic

 

Information Technology

100%

Automatic

 

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