What makes us different as a FDI consultants in India?
Whether you are a startup or an existing business, our FDI team will bring you a customized solution
Unique in providing all solution under one roof
(Tax & compliance, co-working space for your office set up, BPO service)
Experienced team of Chartered Accountants, Company Secretaries, Lawyers, Tech Team.
We know the pain and gain in several sectors which makes us handle the process better
We provide customized solutions based on your requirements of various services
The road ahead of opportunities in FDI in India
You are one Click away to speak to your relationship manager for supporting you on your investment journey or any other related enquiries on fdi process in India
- As per the World Bank report, The ease of doing business in India improved after a series of reforms have made it easier for companies to get construction permits, pay taxes and cross border trading
- India jumped 23 spots from a year ago to 77 out of 190 countries on the ease of doing business ranking in Nov 2018
- It was also among the top 10 most improved economies, according to the "Doing Business 2019" report.
- There are two routes to FDI in India.
- First one is automatic: FDI is allowed without prior approval by Government or Reserve Bank of India
- Second one is Government: Prior approval by government is needed via this route.
- Key Sectors for foreign Investment in India: Infrastructure, Automotive, Pharmaceuticals, Services like banking, insurance, outsourcing, railways, chemical, textiles, airlines. Also other sectors like agriculture.
FDI LIMIT SECTOR WISE
| Sector | FDI Limit | Entry Route & Remarks |
|---|---|---|
|
Agriculture & Animal Husbandry
|
100% |
Automatic |
|
Plantation Sector
|
100% | Automatic |
| Mining Mining and Exploration of metal and non-metal ores including diamond, gold, silver and precious ores but excluding titanium bearing minerals and its ores | 100% | Automatic |
| Mining (Coal & Lignite) | 100% | Automatic |
| Mining Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities | 100% | Government |
| Petroleum & Natural Gas Exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas,marketing of natural gas and petroleum products etc | 100% | Automatic up to 49% Above 49% under Government routein cases resulting in access to modern technology in the country |
|
Broadcasting
|
100% | Automatic |
| Broadcasting Cable Networks (Other MSOs not undertaking up gradation of networks towards digitalization and addressability and Local Cable Operators (LCOs)) | 100% | Automatic |
|
Broadcasting Content Services
|
49% | Government |
| Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels | 100% | Automatic |
|
Print Media
|
26% | Government |
| Publishing/printing of scientific and technical magazines/specialty journals/ periodicals, subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by Ministry of Information and Broadcasting. | 100% | Government |
| Publication of facsimile edition of foreign newspapers | 100% | Government |
| Civil Aviation – Airports Green Field Projects & Existing Projects | 100% | Automatic |
|
Civil Aviation – Air Transport Services
|
100% | Automatic up to 49% Above 49% under Government route 100% Automatic for NRIs |
|
Civil Aviation
|
100% | Automatic |
| Construction Development: Townships, Housing, Built-up Infrastructure | 100% | Automatic |
| Industrial Parks (new & existing) | 100% | Automatic |
| Satellites- establishment and operation, subject to the sectoral guidelines of Department of Space/ISRO | 100% | Government |
| Private Security Agencies | 74% | Automatic up to 49% Above 49% & up to 74% under Government route |
| Telecom Services | 100% | Automatic up to 49% Above 49% under Government route |
| Cash & Carry Wholesale Trading | 100% | Automatic |
| E-commerce activities (e-commerce entities would engage only in Business to Business (B2B) e-commerce and not in Business to Consumer (B2C) e-commerce.) | 100% | Automatic |
| Single Brand retail trading Local sourcing norms will be relaxed up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology. | 100% | Automatic up to 49% Above 49% under Government route |
| Multi Brand Retail Trading | 51% | Government |
| Duty Free Shops | 100% | Automatic |
|
Railway Infrastructure
Construction, operation and maintenance of the following
|
100% | Automatic |
| Asset Reconstruction Companies | 74% | Automatic up to 49% Above 49% & up to 74% under Government route |
| Banking- Private Sector | 74% | Automatic up to 49% Above 49% & up to 74% under Government route |
| Banking- Public Sector | 20% | Government |
| Credit Information Companies (CIC) | 100% | Automatic |
| Infrastructure Company in the Securities Market | 49% | Automatic |
|
Insurance
|
49% | Automatic |
| Pension Sector | 49% | Automatic |
| Power Exchanges | 49% | Automatic |
| White Label ATM Operations | 100% | Automatic |
| Financial services activities regulated by RBI, SEBI, IRDA or any other regulator | 100% | Automatic |
| Pharmaceuticals(Green Field) | 100% | Automatic |
| Pharmaceuticals(Brown Field) | 100% | Automatic up to 74% Above 74% under Government route |
| Food products manufactured or produced in India Trading, including through e-commerce, in respect of food products manufactured or produced in India. | 100% | Government |
Prohibited Sectors FDI is prohibited in the following sectors
Frequently Asked Questions
Foreign investment in India is possible by investing in businesses directly or by investing in the stock market. There are two types of FDI- One is GREENFIELD which means setting up an entirely new establishment Second is BROWNFIELD which means acquisition of an existing business to expand/grow it further.
The most popular sectors for foreign direct investment in India are infrastructure, pharmaceuticals, service, railways, textiles, chemicals.
In India Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce regulates the matter related to FDI
In India there are two routes through which FDI comes- ONE: Automatic, where no prior approval of Government is required, SECOND is Government, where prior approval of Government is required.
Investing in India requires expert analysis in terms of feasibility, restrictions and limits imposed, The best thing is to reach out to experts such as Chartered Accountants specially the foreign direct investment consulting firms. CAONWEB has a team of Chartered Accountants, Lawyers, and Company Secretaries who can give you the expert advice on foreign investment in India.
With an experience of serving clients for FDI requirement, our team of experts at CAONWEB can help you with fdi process in India. Our team can provide all fdi solutions as you need such as expert advice and compliance help in fdi policy in India, fdi process in India, fdi limits in India, feasibility in various sectors in FDI.
FDI in India is prohibited in the following sectors:
- Lottery Business which could be Government or private sector lottery also online lotteries and any other which is regarded as lottery
- Gambling and betting including casinos etc.
- Chit funds
- Nidhi company
- Trading in Transferable Development Rights (TDRs)
- Real Estate Business or Construction of Farm Houses
- Cigars, cheroots, cigarillos and cigarettes manufacturing and also of tobacco or of tobacco substitutes
- Activities or sectors not open to private sector investment such as Atomic energy and Railway operations (other than permitted activities mentioned in entry 18 of Annex B).