Sectors in which 100% FDI is permitted under Automatic Route:

February 24, 2019


  • Agriculture & Animal Husbandry

    • a) Floriculture, Horticulture, and Cultivation of Vegetables & Mushrooms under controlled conditions;
      b) Development and Production of seeds and planting material;
      c) Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, Apiculture; and
      d) Services related to agro and allied sectors
  • Plantation Sector

    • (i) Tea sector including tea plantations
      (ii) Coffee plantations
      (iii) Rubber plantations
      (iv) Cardamom plantations
      (v) Palm oil tree plantations
      (vi) Olive oil tree plantations
      Note: Besides the above, FDI is not allowed in any other plantation sector/activity
  • Mining and Petroleum & Natural Gas

    • Mining and Exploration of metal and non-metal ores including diamond, gold, silver and precious ores but excluding titanium bearing minerals and its ores; subject to the Mines and Minerals (Development & Regulation) Act, 1957.Coal & Lignite
      (1) Coal & Lignite mining for captive consumption by power projects, iron & steel and cement units and other eligible activities permitted under and subject to the provisions of 100% Automatic Coal Mines (Nationalization) Act, 1973.
      (2) Setting up coal processing plants like washeries subject to the condition that the company shall not do coal mining and shall not sell washed coal or sized coal from its coal processing plants in the open market and shall supply the washed or sized coal to those parties who are supplying raw coal to coal processing plants for washing or sizing.

Mining and mineral separation of titanium bearing minerals & ores, its value addition and integrated                          activities subject to sectoral regulations and the Mines and Minerals (Development and Regulation Act                        1957).

  • 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, petroleum product
      pipelines, natural gas/pipelines, LNG Regasification infrastructure, market study and formulation and Petroleum refining in the private sector, subject to the existing sectoral policy and regulatory
      framework in the oil marketing sector and the policy of the Government on private participation in exploration of oil and the discovered fields of national oil companies.
  • Manufacturing

    • Subject to the provisions of the FDI policy, foreign investment in ‘manufacturing’ sector is under automatic route. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval.
    • Notwithstanding the FDI policy provisions on trading sector, 100% FDI under Government approval route is allowed for retail trading, including through e-commerce, in respect of food products manufactured and/or produced in India.
  • Broadcasting

    • (1)Teleports(setting up of up-linking HUBs/Teleports);
      (2)Direct to Home (DTH);
      (3)Cable Networks (Multi System operators (MSOs) operating at National or State or District level and
      undertaking upgradation of networks towards digitalization and addressability);
      (4)Mobile TV;
      (5)Headend-in-the Sky Broadcasting Service(HITS)
    • Cable Networks(Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))Note:
      Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permission
      from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by
      existing investor to new foreign investor, will require Government approval.
  • Broadcasting Content Services

    • Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels
  • Civil Aviation

    • FDI allowed under automatic route for both Greenfield and Brownfield projects for Airports.
  • Construction Development: Townships, Housing, Built-up Infrastructure

    • Construction-development projects (which would include development of townships, construction of
      residential/commercial premises, roads or bridges, hotels, resorts, hospitals, educational institutions,
      recreational facilities, city and regional level infrastructure, townships)
  • Industrial Parks

  • Cash and Carry Wholesale Trade/Wholesale Trading

  • E-Commerce Activities
    • 100% FDI is allowed under automatic route under Marketplace Model.

Mr. Nipun Khanna is the founder of this firm- Startup Solicitors LLP