| Sector/ Activity |
FDI Cap |
Entry Route |
Other Conditions |
Press Note reference* |
| Airports |
| - Greenfield project |
100% |
Automatic |
|
PN 4 / 2006 |
| - Existing projects |
100% |
FIPB route beyond 74% |
|
PN 4 / 2006 |
| Air transport Services |
49% - FDI;100% - for Non Resident Indians |
Automatic |
Subject to no direct or indirect participation by foreign airlines. Government of India Gazette Notification dated 2.11.2004 issued by Ministry of Civil Aviation. www.civilaviation.nic.in |
PN 4/2006 |
Alcohol – Distillation & Brewing |
100% |
Automatic |
Subject to license by appropriate authority |
PN 4 / 2006 |
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 compiled with www.finmin.nic.in |
|
| Atomic Minerals |
74% |
FIPB |
Subject to guidelines issued by Department of Atomic Energy vide resolution No. 8/1(1)/97-PSU/1422 dated 6.10.98 |
|
Banking – Private Sector |
74% (FDI +Foreign institutional investment FII) |
Automatic |
Subject to guidelines for setting up branches/subsidiaries of foreign banks issued by RBI. www.rbi.org.in |
PN 2/2004 |
| Broadcasting
|
| FM Radio |
FDI+FII investment up to 20% |
FIPB |
Subject to guidelines notified by Ministry of Information & Broadcasting. www.mib.nic.in |
PN 6/2005 |
| Cable network |
49% (FDI+FII) |
FIPB |
Subject to Cable Television Network Rules (1994) Notified by Ministry of Information & broadcasting. www.mib.nic.in |
|
| 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 |
|
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 |
PN1 / 2006 |
Up-linking a News & Current Affairs TV Channel |
26% FDI & FII |
FIPB |
Subject to Up-linking Policy notified by Ministry of Information & Broadcasting www.mib.nic.in |
PN1 / 2006 |
Up-linking a Non-news & Current Affairs TV Channel |
100% |
FIPB |
Subject to Up-linking Policy notified by Ministry of Information & Broadcasting www.mib.nic.in |
PN1 / 2006 |
Cigars & Cigarettes - Manufacture |
100% |
FIPB |
Subject to industrial license under the Industries (Development & Regulation) Act, 1951 |
PN 4 / 2006 |
Coal & Lignite mining for captive consumption by power projects, and iron & steel, cement |
100% |
Automatic |
Subject to provisions of Coal Mines (Nationalization) Act, 1973
www.coal.nic.in |
PN 4 / 2006 |
production and other eligible activities permitted under the Coal Mines (nationalization) Act, 1973 |
|
|
www.coal.nic.in |
|
Coffee & Rubber processing and warehousing |
100% |
Automatic |
|
PN 4/ 2006 |
Construction Development projects, including housing, commercial premises, resorts, educational institutions, recreational facilities, city and regional level infrastructure, townships. |
100% |
Automatic |
Subject to conditions notified vide Press Note 2 (2005 Series) including:
- 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.
- 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 sqli.m, in case of construction development project; and any of the above in case of a combination project.
|
PN 2 / 2005 & PN2/ 2006 |
Courier services for carrying packages, parcels and other items which do not come within 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 |
PN 4 /2001 |
| Defence production |
26% |
FIPB |
Subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition |
PN 4 / 2001 & PN 2 / 2002 |
Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, aqua-culture, cultivation of vegetables, mushrooms, under controlled conditions and services related to agro and allied sectors. |
100% |
Automatic |
Subject to licensing under Industries (Development & Regulation) Act, 1951 and other sectoral regulations |
PN 4 / 2006 |
Hazardous chemicals, viz., hydrocyanic acid and its derivatives; phosgene and derivatives; and isocyanates of hydrocarbon. |
100% |
Automatic |
Subject to licensing under Industries (Development & Regulation) Act, 1951 and other sectoral regulations |
PN 4/ 2006 |
Industrial explosives - Manufacture |
100% |
Automatic |
Subject to industrial license under Industries (Development & Regulation) Act, 1951 and regulations under Explosives 1898 |
PN 4 / 2006 |
| Insurance |
26% |
Automatic |
Subject to licensing by the Insurance Regulatory & Development Authority
www.irda.nic.in |
PN 10/2000 |
Investing companies in infrastructure / services sector (except telecom sector) |
49% |
FIPB |
Foreign investment in an investing company will not be counted towards sectoral cap in infrastructure/ services sector provided the investment is up |
PN 2 / 2000 & PN 5/ 2005 |
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. |
PN 2/2000,
PN 3/ 2005 & PN 4/2006 |
| Non Banking Finance Companies – approved activities |
- Merchant Banking
- Underwriting Portfolio Management Services
- Investment Advisory Services
- Financial Consultancy
- Stock Broking Asset Management
- Venture Capital
- Custodial Services
- Factoring
- Credit Rating Agencies
- Leasing & Finance
- Housing Finance
- Forex Broking
- Credit card business
- Money changing business
- Micro credit
- Rural credit
|
100% |
Automatic |
Subject to:
- Minimum capitalization norms for fund based Non Banking Finance Companies NBFCs – US$ 0.5 million to be brought upfront for FDI upto 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 upto 100%.
- Minimum capitalization norms for non-fund based NBFC activities – US$ 0.5 million
- 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.
- 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.
- Compliance with the guidelines of the RBI.
|
|
| Petroleum and Natural gas Sector |
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 passed by Ministry of Petroleum and Natural Gas; and in the case of actual trading and marketing of Petroleum products, disinvestment of 26% equity in favour of Indian partner/public within 5 years.
www.petroleum.nic.in |
PN 1/2004 &
PN 4/2006 |
| Refining |
26% in case of Public Sector Undertakings (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 |
PN 2/2000 |
| Print Media |
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 |
|
| Publishing of scientific magazines/specialty journals/periodicals |
100% |
FIPB |
Subject to Guidelines notified by Ministry of Information & Broadcasting.
www.mib.nic.in |
PN 1/ 2004 |
Power including generation (except Atomic energy); transmission, distribution and Power Trading. |
100% |
Automatic |
Subject provisions of the Electricity Act, 2003
www.powermin.nic.in |
PN 2/1998
PN 7 / 2000 & PN 4/2006 |
| Tea Sector, including tea plantation |
100% |
FIPB |
Subject to divestment of 26% equity in favour of Indian partner/ Indian public within 5 years and prior approval of State Government for change in land use. |
PN 6/2002 |
| Telecommunications |
Basic and Cellular, Unified Access services, National / International Long Distance, V- Sat, Public Mobile Radio Turnkey Services (PMRTS). Global Mobile Personal Communications Services (GMPCS) and other value added telecom services |
74% (including FDI, FII, NRI, Foreign Currency Convertible Bonds, American Depository Receipts, Global Depository Receipts, convertible preference shares, and proportionate foreign equity in Indian promoters/investing company) |
Automatic up to 49%
FIPB beyond 49% |
Subject to guidelines notified in the PN 5 (2005 series) |
PN 5 / 2005 |
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 Department of Telecommunications
www.dotindia.com |
PN 4 / 2001 |
| ISP without gateways, infrastructure provider providing dark fibre, 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 |
PN 9/ 2000 |
Manufacture of telecom equipments |
100% |
Automatic |
Subject to sectoral requirements.
www.dotindia.com |
PN 2/2000 |
| Trading |
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 |
100%
100%
100% |
Automatic
Automatic
FIPB
FIPB
|
Subject to the guidelines for FDI in trading issued by Department of Industrial Policy and Promotion vide Press Note 3 (2006 series) |
PN 4 / 2006 |
| Single Brand product retailing |
100%
51% |
FIPB |
|
|
Satellites – Establishment and operation |
74% |
FIPB |
Subject to Sectoral guidelines issued by Department of Space / ISRO
www.isro.org |
|
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 Foreign Trade Policy
www.sezindia.nic.in |
PN 9/ 2000
PN 2/ 2006 & PN 4/2006 |