Press Information Bureau
Government of India
Ministry of Commerce & Industry

19-December-2011 14:31 IST

Review of FDI

The extant Foreign Direct Investment (FDI) policy,  as contained in Circular 2 of 2011 – Consolidated FDI Policy’ issued by Department of Industrial Policy & promotion is as under:-

 

           

 

            FDI in Micro and Small Enterprises (MSEs) is subject to the sectoral caps, entry routes and other relevant sectoral regulations.  FDI is also subject to applicable laws/regulations; security and other conditionalities. 

            The Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100% is permitted on the automatic route, in most sectors/activities.  Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains increasingly attractive and investor-friendly.  Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to make it more investor friendly.

This information was given by Shri Jyotiraditya M. Scindia,  Minister of State for Commerce and Industry in written reply to a question in the Lok  Sabha today.

DS/GK

FDI caps and entry routes clarified: government retains sectoral control while most sectors allow automatic entry. The statement identifies sectoral FDI ceilings and entry routes: FM radio requires government approval, construction development permits full foreign equity on the automatic route, and defence is subject to a capped equity share with government route; FDI in Micro and Small Enterprises follows sectoral caps and regulations. It further states that most sectors permit FDI on the automatic route up to full equity, subject to applicable laws, security conditions and ongoing policy review to enhance investor friendliness.