FDI up to 100% is allowed on the automatic route in most sectors/activities, subject to applicable laws/regulations; security and other conditionalities. FDI is prohibited in Lottery Business including Government/private lottery, online lotteries etc; Gambling and betting including casinos etc.; chit funds; Nidhi company; trading in Transferable Development Rights (TDRs); Real Estate Business of Construction of Farm Houses; Manufacturing of Cigars, cheroots, Cigarillos and cigarettes; of tobacco or of tobacco substitutes; activities/sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than 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 main railway line and Mass Rapid Transport Systems).

FDI, in various sectors, is allowed, up to the different limits, varying from 20% to 100% subject to applicable laws/regulations; security and other conditionalities. The detailed information is in ‘Consolidated FDI Policy Circular 2014’ as updated vide Press Notes 7 (2014) and 8 (2014), available at this Department’s website.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

Foreign direct investment limits: automatic route allowed in most sectors subject to sectoral caps and specified prohibitions. Foreign Direct Investment is permitted on the automatic route in most sectors subject to sectoral ceilings, applicable laws, and security and other conditionalities. The Consolidated FDI Policy Circular 2014 and its Press Note updates set variable equity limits by sector, while explicitly prohibiting foreign investment in activities such as lotteries, gambling, chit funds, Nidhi companies, trading in TDRs, certain real estate and specified tobacco manufacturing, and select non private sectors.