TaxTMI 
TaxTMI 
Consolidated Policy on Foreign Direct Investment
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....ling 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 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 & pr....
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....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 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....
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....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 5....
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....vesting 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 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. ii) Underwriting Portfolio Management Services iii) Investment Advisor....
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....f 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. Wholesale/cash & carry trading 100% Automatic b. Trading for exports 100% Automatic c. Trading of items sourced from small scale sector 100% FIPB Subject to the condition that the test marketing approval will be for a period of two years and Investment in setting up manufacturing facilities comomences simultaneously with test marketing. d. Test marketing of such items for which a company has approval for manufacture 100% FIPB e. Single Brand product retailing 51% FIPB 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 100% Automatic Subject to Speci....