Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. Significant changes have been made in the FDI policy regime in the recent times, to ensure that India remains an attractive investment destination.

In a recent review of the policy, Government has amended the sectoral caps and/or entry routes in some sectors viz. petroleum & natural gas; commodity exchanges; power exchanges; stock exchanges; depositories and clearing corporations; asset reconstruction companies; credit information companies, tea sector including tea plantations; single brand product retail trading; test marketing; telecom services; courier services and defence.

Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to making it more investor friendly.

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. E.M. Sudarsana Natchiappan in Rajya Sabha today.

Foreign direct investment liberalisation expands automatic-route ownership and eases sectoral caps to attract investor participation. The policy permits Foreign Direct Investment up to full foreign ownership in most sectors under the automatic route, and recent revisions have amended sectoral caps and entry routes across areas such as petroleum and natural gas, exchanges and market infrastructure, asset reconstruction and credit information companies, tea plantations, single-brand retail and specified service sectors; the regime is maintained under ongoing review to enhance investor-friendliness.