TaxTMI 
TaxTMI 
Consolidated Policy on Foreign Direct Investment
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.... product retailing) ii. Atomic Energy iii. Lottery Business iv. Gambling and Betting v. Business of chit fund vi. Nidhi Company vii. Trading in Transferable Development Rights (TDRs). viii. Activity/sector not opened to private sector investment II. Sector-specific policy for FDI: In the following sectors/activities, FDI is allowed up-to the limit indicated below subject to other conditions as indicated. Sr.No. Sector/Activity FDI Cap/Equity Entry Route Other conditions I AGRICULTURE 1. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture 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....
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....s 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 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 i....
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....g. 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 ....
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....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. ^125. Non Banking Finance Companies i) Merchant Banking 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 India....
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....r, 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 proportionate 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. Manufac....