Review of Foreign Direct Investment (FDI) policy is an ongoing process and changes are made in the FDI policy regime, from time to time, to ensure that India remains an attractive investment destination.

FDI in various sectors is allowed in a calibrated manner after having intensive consultations with stakeholders including concerned Ministries and Departments, State Governments, apex industry chambers, associations and other organizations taking into consideration their views and comments.  FDI policy on various sectors, indicating therein sector-wise FDI limits is, provided in the ‘Consolidated FDI Policy Circular of 2017’, as amended from time to time through subsequent Press Notes, which are available on the website of Department for Promotion of Industry & Internal Trade at www.dipp.gov.in.

While FDI policy lays down an enabling framework for attracting foreign investment, Ministry of Home Affairs has laid down detailed guidelines for assessment of proposals from national security point of view. In order to boost economic growth without compromising the security of the country, proposals are evaluated on the basis of their potential threat to nation’s unity, territorial integrity and sovereignty.

This information was given by the Minister of Commerce and Industry, PiyushGoyal, in a written reply in the Lok Sabha today.

Foreign Direct Investment policy balancing investor facilitation with national security screening and inter ministerial stakeholder consultation. The regulatory framework provides ongoing review and amendment of the Foreign Direct Investment (FDI) policy, with sector-wise limits set out in the Consolidated FDI Policy Circular of 2017 and subsequent Press Notes, and requires intergovernmental and stakeholder consultation prior to changes; FDI proposals are additionally screened under Ministry of Home Affairs guidelines for threats to national unity, territorial integrity and sovereignty.