FDI automatic route for medical devices now permits full foreign investment for manufacturing and exempts pharma brownfield conditions.
The policy permits full foreign direct investment under the automatic route for manufacturing of medical devices, and the pharmaceutical-sector brownfield and greenfield conditions will not apply to medical device projects. The Press Note provides a detailed definition of "medical device," including instruments, accessories and in vitro diagnostic reagents and systems, and notes the definition is subject to amendment in the Drugs and Cosmetics Act. Usual pharmaceutical controls such as non compete restrictions and FIPB certificate requirements continue to apply to pharmaceuticals generally.

Line of Credit conditions require majority Indian sourcing and set LC and disbursement timelines for project exports.
Exim Bank's Line of Credit to Liberia for a Power Transmission and Distribution Project conditions financing on use of goods and services eligible under India's Foreign Trade Policy, mandates that at least 75 percent of contract value be supplied from India with up to 25 percent sourced abroad, sets distinct deadlines for opening Letters of Credit and disbursement for project exports versus supply contracts, requires GR/SDF shipment declarations, precludes payable agency commission under the LOC while permitting exporter-funded commission from own resources or EEFC balances subject to AD Category I bank compliance, and is issued under sections 10(4) and 11(1) of FEMA, 1999.

Non-resident guarantee for non-fund based facilities allowed to support resident-to-resident undertakings, enabling hedging via group guarantees.
Non-resident guarantees may support non-fund based facilities between residents under the general permission route, allowing resident subsidiaries of multinational groups to hedge foreign currency exposure through derivative contracts with Authorised Dealer Category I banks on the strength of a non resident group guarantee; discharge of guarantor liability and repayment by the principal debtor continue to be governed by A.P. (DIR Series) Circular No. 28 of 2001, and banks must notify their constituents, with directions issued under the Foreign Exchange Management Act, 1999.

Mapping FDI sectoral caps and entry routes to NIC-2008 sets specific equity limits, prohibitions and compliance conditions across industries.
The Press Note maps Consolidated FDI Policy 2014 sectoral norms to NIC-2008 and sets permissibility, equity caps and entry routes: prohibitions (lottery, gambling, chit funds, nidhi, TDR trading, certain real estate and tobacco manufacture), broad automatic 100% FDI where not specified, and detailed sectoral ceilings and conditions for agriculture under controlled conditions, mining (including titanium restrictions), petroleum, defence (26% with government route and security/management conditions), broadcasting (activity-specific caps and extensive security/monitoring obligations), civil aviation, construction/industrial parks, trading/retail formats, financial services (varied caps for banks, insurance, NBFCs, exchanges) and other regulated sectors, with cross-cutting requirements on regulators, security clearances, minimum capitalization, domestic sourcing and state consent.

Security for external commercial borrowings: expanded permissible charges on assets and guarantees to secure ECBs subject to conditions
AD Category I banks may permit creation of charge on immovable assets, movable assets, financial securities and issuance of corporate and personal guarantees in favour of overseas lenders/security trustees to secure ECBs, provided the ECB complies with extant guidelines, the loan agreement contains a security clause mandating such charge, and necessary no objection certificates from existing Indian lenders are obtained; specific regulatory conditions apply to immovable properties, movable assets, financial securities transfers and guarantee formalities, and these measures are subject to FEMA regulations and immediate effect.

Charge on overseas shares permitted under automatic route, subject to compliance and prior central bank approval on invocation.
Creation of a charge on shares of an overseas joint venture, wholly owned subsidiary or step down subsidiary by an Indian investor is permitted under the automatic route subject to regulatory financial commitment compliance and other notification requirements. Overseas assets charged must not be securitised; charge periods should align with end use; loans from domestic lenders must fund core overseas activities and not investments back into India; an auditor's certificate confirming non utilisation for India must be retained; and invocation leading to domestic acquisition of overseas assets requires prior central bank approval.

Line of Credit conditions for project exports: local content requirement, LC/disbursement timelines, and FEMA compliance.
Exim Bank's Line of Credit to the Republic of Congo finances the Ketende Hydroelectric Project, requiring at least 75 per cent of contract value for goods and services to be supplied from India and eligible under India's Foreign Trade Policy; specified timelines govern opening of Letters of Credit and disbursement for project and supply contracts, shipments must be declared on GR/SDF forms, agency commission is not payable under the LOC though exporters may remit commission from their own resources or EEFC balances after realization, and AD Category I banks must inform exporters and obtain LOC details, with directions issued under FEMA.

Line of Credit terms require majority India sourced exports and specified timelines for Letters of Credit and disbursement.
Line of Credit extended by Exim Bank to the Government of Rwanda finances targeted agricultural projects and supply contracts subject to eligibility under the Foreign Trade Policy, with at least 75 percent of contract value sourced from India and defined timelines for opening Letters of Credit and disbursement. Shipments must be declared on GR/SDF forms, no agency commission is payable under the LOC though exporters may use their own funds or EEFC balances for commissions subject to realization and remittance rules, and Authorised Dealer Category-I banks must inform exporters while recognizing other legal permissions may be required.

Exemption of multilateral organisation deposits extended to member organisations and their affiliate bodies, easing account opening requirements.
The Foreign Exchange Management (Deposit) Regulations, 2000 have been amended to exempt deposits held with Authorised Dealer Category I banks by any multilateral organisation of which India is a member, and their subsidiary/affiliate bodies and officials in India, thereby aligning these organisations with the prior exemption afforded to the United Nations and its bodies; the amendment was notified via the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2014 and communicated to AD Category I banks, subject to other statutory permissions.

FCRA registration deletions: associations removed from show-cause listings for failing to submit mandatory annual returns or due to cancellation.
Administrative deletions from the list attached to a Show Cause Notice under the FCRA are recorded where associations failed to furnish mandatory annual returns in the prescribed proforma, or where deletions arose from voluntary cancellation requests, allotment of new registration numbers after name-change approvals, or claims of non-receipt of registration documents. Each listed association is identified with its registration identifier and the factual basis for cancellation or deletion.

Rupee Drawing Arrangement: AD Category I banks must submit RDA correspondence and prescribed statements to RBI regional offices.
Authorised Dealer Category I banks must submit all Rupee Drawing Arrangement correspondence and prescribed statements to the Regional Office of the Reserve Bank's Foreign Exchange Department having jurisdiction over the bank's registered office; prior instructions on Vostro account maintenance remain unchanged and the directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999.

Money Transfer Service Scheme: Indian agents must submit correspondence and statements to the designated regional office for processing.
All Authorised Persons who are Indian agents under the Money Transfer Service Scheme must direct correspondence and submit prescribed statements and returns to the Regional Office of the Reserve Bank's Foreign Exchange Department having jurisdiction over their registered office, to avoid delays from sending material to the Central Office; other procedural instructions under the Scheme remain unchanged and the directions are issued under the Foreign Exchange Management Act.

Overseas investments by Alternative Investment Funds now permitted under amended FEMA rules, allowing SEBI-registered AIFs to invest abroad.
Indian Alternative Investment Fund (AIF) may undertake overseas investments under the A.P.(DIR Series) Circulars No. 49 and 50 of 2007 subject to SEBI registration; Regulation 26 of the relevant FEMA notification has been amended by Notification No. FEMA.326/RB-2014, effective from its Gazette publication. Authorised Dealer (Category I) banks are to inform constituents and customers; directions issued under Sections 10(4) and 11(1) of FEMA, 1999 and without prejudice to other statutory permissions.

FDI in railway infrastructure permitted under automatic route; equity beyond security-sensitive threshold referred to Cabinet Committee on Security.
DIPP authorised FDI in specified railway infrastructure activities under the automatic route subject to conditions, listing permitted activities such as suburban corridor PPPs, high speed trains, dedicated freight lines, rolling stock manufacture and maintenance, electrification, signaling, freight and passenger terminals, industrial park rail infrastructure and Mass Rapid Transport Systems; equity beyond the security-sensitive threshold is to be referred to the Cabinet Committee on Security.

Foreign direct investment permitted higher participation in defence with capped portfolio investment and mandatory allocation and monitoring.
Revision permits Foreign Direct Investment up to 49% under the government route in defence subject to Press Note 7 (2014 Series) conditions; portfolio and FVCI investment collectively capped at 24% of total equity with NRI portfolio investment not exceeding 10%, portfolio investment under automatic route. Listed defence investee companies must allocate sub limits for RFPI (including QFI and FII), NRI and FVCI within the 24% and inform the Reserve Bank for monitoring. Items not on the finalized defence list and most dual use items do not require an industrial licence; FEMA principal regulations were amended accordingly.

Foreign Direct Investment policy alignment brings Consolidated FDI sectoral conditions into FEMA regulations, requiring dealer bank notification.
Annex B to Schedule 1 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 has been revised to align sector descriptions, entry norms, sectoral caps and conditions for FDI under the Automatic and Government routes with the Consolidated FDI Policy Circular of 2014. The Reserve Bank effected these changes via the Tenth Amendment Regulations, 2014, and directed Authorised Dealer Category I banks to inform their constituents; the directions are issued under sections 10(4) and 11(1) of FEMA, 1999 and remain subject to other statutory permissions.

Line of Credit for Niger enables export financing subject to Indian content requirements, shipment declarations and FEMA compliance.
Exim Bank's Line of Credit to the Government of Niger finances eligible goods, machinery, equipment and consultancy services from India for a potable water project, requiring at least 75 percent Indian supply content and permitting up to 25 percent foreign procurement. The Credit Agreement sets distinct periods for opening Letters of Credit and disbursement for project and other supply contracts; shipments must be declared on GR/SDF forms. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission subject to AD Category I bank compliance. Directions are issued under FEMA and do not prejudice other statutory approvals.

FDI in construction sector: revised policy permits full foreign investment under automatic route with updated area, capitalization, and exit rules.
The revision permits full foreign equity under the automatic route for construction development projects while recalibrating minimum area and capitalization requirements, specifying that minimum FDI must be brought within a defined period from statutory approval of building/layout plans, allowing subsequent tranches up to ten years or until project completion, tying exit or repatriation to project completion or development of trunk infrastructure, and imposing duties on investee companies and local approving authorities to obtain approvals, develop infrastructure, and monitor compliance; certain project types and affordable housing commitments are carved out.

Submission of tax-related certificates required for remittance of assets under FEMA amendments; AD banks must follow CBDT instructions.
Submission of auditor certificates and tax-related declarations is mandatory for remittance of assets under the amended Foreign Exchange Management (Remittance of Assets) Regulations; AD Category I banks must ensure compliance with the revised tax certification formats and procedural conditions referenced in the A.P. (DIR Series) guidance.

Withdrawal of gold import restrictions ends prior scheme, restoring normal import rules for nominated banks and agencies.
All prior instructions implementing the 20:80 gold import scheme are withdrawn with immediate effect; the scheme and its restrictions on gold import by nominated banks, agencies and entities cease to apply, AD Category I banks must notify their constituents, and the directions are issued under powers of the central foreign exchange statute without prejudice to permissions required under other laws.