Sr.

No.

Sector/Activity

FDI Cap /

Equity

Entry

Route

Other  conditions

I

AGRICULTURE

1.

Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aqua-culture and Cultivation of Vegetables & Mushrooms under controlled conditions and services related to agro and allied sectors.

Note: Besides the above, FDI is not allowed in any other agricultural sector/activity

100%

Automatic

2.

Tea  Sector,

including tea

plantation

Note: Besides the above, FDI is not allowed in any other plantation sector/activity

100%

FIPB

Subject to divestment of 26% equity in favour of Indian partner/Indian public within 5 years and prior approval of State Government concerned in case of any change in future  land use.

II

INDUSTRY

II A

MINING

3.

Mining covering

exploration and

mining of diamonds

& precious stones;

gold, silver and

minerals.

100%

Automatic

Subject to Mines & Minerals (Development & Regulation) Act, 1957 www.mines.nic.in

Press Note 18 (1998) and Press Note 1 (2005) are not applicable for setting up 100% owned subsidiaries in so far as the mining sector is concerned, subject to a declaration from the applicant that he has no existing joint venture for the same area and /or the particular mineral.

4.

Coal  &  Lignite

mining for captive

consumption by

power projects,

and iron & steel, cement  production and other eligible activities permitted under the Coal Mines

(Nationalisation) Act, 1973.

100%

Automatic

Subject to provisions of Coal Mines

(Nationalization) Act, 1973

www.coal.nic.in

5.

Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities .

Note : FDI will not be allowed in mining of "prescribed substances" listed in Government of India notification No. S.O. 61(E) dt. 18.1.2006 issued by the Department of Atomic Energy under the Atomic Energy Act, 1962.  

100%

FIPB

Subject to sectoral regulations and the Mines and Minerals (Development & Regulation) Act, 1957 and the following conditions-

i. value addition facilities are set up within India along with transfer of technology;

ii. disposal of tailing during the mineral separation shall be carried out in accordance with regulations framed by the Atomic Energy Regulatory Board such Atomic Energy (Radiation Protection) Rules 2004 and the Atomic Energy (Safe Disposal of Radioactive Wastes) Rules 1987.

II B

MANUFACTURING

 6.

Alcohol-

Distillation  &

Brewing

100%

Automatic

Subject to license by appropriate authority

 7.

Cigars  &

Cigarettes-

Manufacture

100%

FIPB

Subject to industrial license under the Industries (Development & Regulation) Act, 1951

 8.

Coffee&  Rubber

processing  &

warehousing

100%

Automatic

 9.

Defence

production

26%

FIPB

Subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition.

 10.

Hazardous

chemicals,  viz.,

hydrocyanic acid

and its derivatives;

phosgene and its

derivatives; and

isocyanates and diisocyantes of hydrocarbon.

100%

Automatic

Subject to industrial license under the Industries (Development & Regulation) Act, 1951 and other sectoral regulations.

 11.

Industrial

explosives -

Manufacture

100%

Automatic

Subject to industrial license under Industries (Development & Regulation) Act, 1951 and regulations under Explosives Act, 1898

12.

Drugs & Pharmaceuticals including those involving use of recombinant DNA technology

100%

Automatic

II C

POWER

13.

Power including

generation

(except Atomic

energy);

transmission, distribution and

Power Trading.

100%

Automatic

Subject to provisions of the Electricity Act, 2003 www.powermin.nic.in

III

SERVICES

14.

CIVIL AVIATION SECTOR

(i)

Airports-

a.

Greenfield projects

100%

Automatic

Subject to sectoral regulations notified by Ministry of Civil Aviation www civilaviation.nic. in

b.

Existing projects

100%

FIPB

beyond

74%

Subject to sectoral regulations notified by Ministry of Civil Aviation www.civilaviation.nic. in

(ii)

Air Transport Services including Domestic Scheduled Passenger Airlines; Non-Schedules Airlines; Chartered Airlines; Cargo Airlines; Helicopter and Seaplane Services

       c.

Scheduled Air Transport

Services/ Domestic Scheduled Passenger Airline

49%- FDI;

100%- for

NRI

investment

Automatic

Subject to no direct or indirect participation by foreign airlines and sectoral regulations..

       d.

Non-Scheduled Air Transport Service/ Non-Scheduled airlines, Chartered airlines, and Cargo airlines

74%- FDI

100%- for NRIs investment

Automatic

Subject to no direct or indirect participation by foreign airlines in Non-Scheduled and Chartered airlines. Foreign airlines are allowed to participate in the equity of companies operating Cargo airlines. Also subject to sectoral regulations.

       e.

Helicopter Services/Seaplane services requiring DGCA approval

100%

Automatic

Foreign airlines are allowed to participate in the equity of companies operating Helicopter and seaplane airlines. Also subject to sectoral regulations.

(iii)

Other services under Civil Aviation Sector

      f.

Ground Handling Services

74%- FDI

100%- for NRIs investment

Automatic

Subject to sectoral regulations and security clearance.

      g.

Maintenance and Repair organizations; flying training institutes; and technical training institutions

100%

Automatic

 15.

Asset

Reconstruction

Companies

49%

(only

FDI)

FIPB

Where any individual investment exceeds 10% of the equity, provisions of Section 3(3)(f) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should be complied with. www.finmin.nic.in

16.

Banking  -

Private  sector

74%

(FDI+FII)

Automatic

Subject to guidelines for setting up branches / subsidiaries of foreign banks issued by RBI. www.rbi.org.in

17.

Broadcasting

a.

FM Radio

FDI +FII

investment

up to 20%

FIPB

Subject to Guidelines notified by Ministry of Information & Broadcasting. www.mib.nic.in

b.

Cable network

49%

(FDI+FII)

FIPB

Subject to Cable Television Network Rules (1994) Notified by Ministry of Information & Broadcasting.  www.mib.nic.in

c.

Direct-To-Home

49%

(FDI+FII).

Within this

limit, FDI

component not to exceed

20%

FIPB

Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in

d.

Setting up

hardware facilities

such as up-linking,

HUB, etc

49%

(FDI+FII)

FIPB

Subject to Up-linking Policy notified by Ministry of Information & Broadcasting. www.mib.nic.in

e.

Up-linking a News

& Current Affairs

TV Channel

26%

FDI+FII

FIPB

Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in

f.

Up-linking a Non-

news & Current

Affairs TV

Channel

100%

FIPB

Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in

18.

Commodity Exchanges

49% (FDI+FII)

Investment by Registered FII under PIS will be limited to 23% and

Investment under FDI Scheme limited to 26%.

FIPB

FII purchases shall be restricted to secondary market only.

No foreign investor/entity, including persons acting in concert, will hold more than 5% of the equity in these companies.

19.

Construction

Development

projects, including

housing,

commercial

premises, resorts,

educational

institutions,

recreational

facilities, city

and regional

level infrastructure,

townships.

Note:: FDI is not allowed in Real Estate Business

100%

Automatic

Subject to conditions notified vide Press Note 2

(2005 Series) including:

a. minimum capitalization of US$ 10 million for

wholly owned subsidiaries and US$ 5 million for joint venture. The funds would have to be brought within six months of commencement of business of the Company.

b. Minimum area to be developed under each project- 10 hectares in case of development of serviced housing plots; and built-up area of 50,000 sq. mts. in case of construction development project; and any of the above in case of a combination project.

[Note 1:  For  investment  by NRIs,  the  conditions mentioned  in  Press Note 2 / 2005 are not applicable.

Note 2: For investment in SEZs, Hotels & Hospitals, conditions mentioned in Press Note 2(2005) are not applicable]

20.

Courier  services

for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898.

100%

FIPB

Subject to existing laws and exclusion of activity relating to distribution of letters, which is exclusively reserved for the State. www.indiapost.gov.in

21.

Credit Information Companies

49 % (FDI+FII)

Investment by Registered FII under PIS will be limited to 24% only in the CICs listed at the Stock Exchanges within the overall limit of 49% foreign investment.

FIPB

Foreign Investment in CIC will be subject to Credit Information Companies (Regulation) Act, 2005.

FII investment will be subject to the conditions that:

(a) No single entity should directly or indirectly hold more than 10% equity

(b) Any acquisition in excess of 1% will have to be reported to RBI as a reporting requirement; and

(c) FIIs investing in CICs shall not seek a representation on the Board of Directors based upon their shareholding.

 22.

Industrial Parks both setting up and in established Industrial Parks

100%

Automatic

Conditions in Press Note 2(2005) applicable for construction development projects would not apply provided the Industrial Parks meet with the under-mentioned conditions-

i. it would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area;

ii. the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area.

 23

Insurance

26%

Automatic

Subject to licensing by the Insurance Regulatory & Development Authority

www.irda.nic.in

 24.

Investing

companies  in

infrastructure /

services  sector

(except  telecom

sector)

100%

FIPB

Where there is a prescribed cap for foreign investment, only the direct investment will be considered for the prescribed cap and foreign investment in an investing company will not be set off against this cap provided the foreign direct investment in such investing company does not exceed 49% and the management of the investing company is with the Indian owners.

25.

Non  Banking  Finance  Companies

i)

ii)

iii)

iv)

v)

vi)

vii)

viii)

ix)

x)

xi)

xii)

xiii)

xiv)

xv)

xvi)

xvii)

xviii)

Merchant

Banking

Underwriting

Portfolio

Management

Services

Investment

Advisory

Services

Financial

Consultancy

Stock  Broking

Asset

Management

Venture  Capital

Custodial

Services

Factoring

Credit  Rating

Agencies

Financial Leasing & Hire Purchase

Finance

Housing

Finance

Forex  Broking

Credit card

Business

Money

changing

business

Micro  credit

Rural credit

100%

Automatic

Subject to:

a. minimum capitalization norms for fund based NBFCs - US$ 0.5 million to be brought upfront for FDI up to 51%;  US$ 5 million to be brought upfront for FDI above 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months for FDI beyond 75% and up to 100%.

b. minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million.

c. foreign investors can set up 100% operating subsidiaries without the condition to disinvest a minimum of 25% of its equity to Indian entities subject to bringing in US$ 50 million without any restriction on number of operating subsidiaries without bringing additional capital.

d. joint venture operating NBFC's that have 75% or less than 75% foreign investment will also be allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow.

e. compliance with the guidelines of the RBI.

f. The minimum capitalization norms would apply would be applicable where the  foreign holding in a NBFC(both direct and indirect)  exceeds the limits indicated at (a) above

g. The capital for the purpose of minimum capitalization norms shall consist of ordinary shares only.

26.

Petroleum  &  Natural  Gas  sector

a.

Refining

49% in

case  of

PSUs

100% in

case  of

Private

companies

FIPB

(in case of

PSUs)

Automatic

(in case of

private

companies)

Subject to Sectoral policy

www.petroleum.nic.in and no divestment or dilution of domestic equity in the existing PSUs.

b.

Other than

Refining and

including market

study and

formulation;

investment/

financing; setting

up infrastructure

for marketing in

Petroleum &

Natural Gas

sector.

100%

Automatic

Subject to sectoral regulations issued by Ministry of Petroleum & Natural Gas

www.petroleum.nic.in

27.

Print Media

a.

Publishing of

newspaper  and

periodicals

dealing with

news and current affairs

26%

FIPB

Subject to Guidelines notified by Ministry of Information & Broadcasting. www.mib.nic.in

b.

Publishing of

scientific

magazines/

specialty

journals/

periodicals

100%

FIPB

Subject to guidelines issued by Ministry of Information & Broadcasting. www.mib.nic.in

28.

Telecommunications

a.

Basic and

cellular, Unified

Access  Services,

National/

International

Long Distance,

V-Sat, Public

Mobile Radio

Trunked

Services

(PMRTS),

Global Mobile

Personal

Communications

Services

(GMPCS) and

other value

added telecom

services

74%

(Including

FDI, FII,

NRI,

FCCBs,

ADRs,

GDRs,

convertible

preference

shares, and

proportio-

nate

foreign

equity in

Indian

promoters/

Investing

Company)

Automatic

up to

49%.

FIPB

beyond

49%.

Subject to guidelines notified in the PN   3(2007)

b.

ISP with

gateways, radio-

paging, end-to-

end bandwidth.

74%

Automatic

up to 49%.

FIPB

beyond

49%.

Subject to licensing and security requirements notified by the Dept. of  Telecommunications.

www.dotindia.com

c.

(a) ISP without

gateway,

(b) infrastructure

provider

providing dark

fibre, right of way,duct space,tower (Category I);

(c) electronic

mail and voice

mail

100%

Automatic

up to 49%.

FIPB

beyond

49%.

Subject to the condition that such companies shall divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Also subject to licensing and security requirements, where required.

www.dotindia.com

d.

Manufacture of

telecom

equipments

100%

Automatic

Subject to sectoral requirements.

www.dotindia.com

29.

Trading

a.

b.

c.

d.

e.

Wholesale/cash

& carry trading

Trading for

exports

Trading of items

sourced from small scale sector

Test marketing

of such items for which a company has approval for manufacture

Single Brand

product retailing

100%

100%

100%

100%

51%

Automatic

Automatic

FIPB

FIPB

FIPB

Subject to the condition that the test marketing approval will be for a period of two years and I nvestment in setting up manufacturing facilities comomences simultaneously with test marketing.

Subject to guidelines for FDI in trading issued by Department of Industrial Policy & Promotion vide

Press Note 3 (2006 Series).

30.

Satellites  -

Establishment

and operation

74%

FIPB

Subject to Sectoral guidelines issued by Department of Space/ISRO

www.isro.org

31.

Special

Economic Zones

and Free Trade

Warehousing

Zones covering

setting up of these Zones and setting up units in the Zones

100%

Automatic

Subject to Special Economic Zones Act, 2005 and the Foreign Trade Policy.

www.sezindia.nic.in