{"id":9297,"date":"2020-10-23T14:57:42","date_gmt":"2020-10-23T09:27:42","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=9297"},"modified":"2022-05-08T23:27:57","modified_gmt":"2022-05-08T17:57:57","slug":"know-about-foreign-direct-investment-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/","title":{"rendered":"Know About Foreign Direct Investment in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e4bdb9828ab\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e4bdb9828ab\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Foreign_Direct_Investment_in_India\" title=\"Foreign Direct Investment in India \">Foreign Direct Investment in India <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Introduction\" title=\"Introduction \">Introduction <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Basic_Requirement_%E2%80%93_Foreign_Direct_Investment_in_India\" title=\"Basic Requirement &#8211; Foreign Direct Investment in India\">Basic Requirement &#8211; Foreign Direct Investment in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Route_of_Foreign_Direct_Investment_in_India\" title=\"Route of Foreign Direct Investment in India\">Route of Foreign Direct Investment in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Foreign_Direct_Investment_in_India_in_Small_scale_Sector_Units\" title=\"Foreign Direct Investment in India in Small scale Sector Units\">Foreign Direct Investment in India in Small scale Sector Units<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#List_of_limit_for_Different_sector_for_Route_of_Foreign_Direct_Investment_in_India\" title=\"List of limit for Different sector for Route of Foreign Direct Investment in India\">List of limit for Different sector for Route of Foreign Direct Investment in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Sectoral_Limited_under_Foreign_Direct_Investment_in_India\" title=\"Sectoral Limited under Foreign Direct Investment in India \u00a0\">Sectoral Limited under Foreign Direct Investment in India \u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Liberalization_of_FDI_in_India_Industries_permitted\" title=\"Liberalization of FDI in India (Industries permitted)\">Liberalization of FDI in India (Industries permitted)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Strictly_prohibited_Industries_for_Foreign_Direct_Investment_in_India\" title=\"Strictly prohibited Industries for Foreign Direct Investment in India\u00a0\">Strictly prohibited Industries for Foreign Direct Investment in India\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#New_policy_forbids_Foreign_Direct_Investment_in_India_in_the_following_categories\" title=\"New policy forbids Foreign Direct Investment in India in the following categories:\">New policy forbids Foreign Direct Investment in India in the following categories:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#REASON_FOR_FOREIGN_INVESTMENT_DECISION\" title=\"REASON FOR FOREIGN INVESTMENT DECISION\">REASON FOR FOREIGN INVESTMENT DECISION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#IMPACT_OF_FOREIGN_INVESTMENT_DECISION\" title=\"IMPACT OF FOREIGN INVESTMENT DECISION\u00a0\">IMPACT OF FOREIGN INVESTMENT DECISION\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#POSITIVE_IMPACT_TO_HOST_COUNTRY_%E2%80%93\" title=\"POSITIVE IMPACT TO HOST COUNTRY\u00a0 &#8211;\">POSITIVE IMPACT TO HOST COUNTRY\u00a0 &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#POSITIVE_IMPACT_TO_HOME_COUNTRY%E2%80%93\" title=\"POSITIVE IMPACT TO HOME COUNTRY&#8211;\">POSITIVE IMPACT TO HOME COUNTRY&#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#NEGATIVE_IMPACT_TO_HOST_COUNTRY_%E2%80%93\" title=\"NEGATIVE IMPACT TO HOST COUNTRY\u00a0 &#8211;\">NEGATIVE IMPACT TO HOST COUNTRY\u00a0 &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#NEGATIVE_IMPACT_TO_HOME_COUNTRY_%E2%80%93\" title=\"NEGATIVE IMPACT TO HOME COUNTRY\u00a0 &#8211;\">NEGATIVE IMPACT TO HOME COUNTRY\u00a0 &#8211;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#FAQ_on_Foreign_Direct_Investment_in_India\" title=\"FAQ on Foreign Direct Investment in India\u00a0\u00a0\">FAQ on Foreign Direct Investment in India\u00a0\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Q1_Is_100_FDI_is_possible_in_any_sector\" title=\"Q1.\u00a0 Is 100% FDI is possible in any sector?\">Q1.\u00a0 Is 100% FDI is possible in any sector?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Q2_Is_FDI_is_allowed_in_any_industry_without_restriction\" title=\"Q2. Is FDI is allowed in any industry without restriction?\">Q2. Is FDI is allowed in any industry without restriction?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Q3_Is_there_any_compliance_required_to_be_made_by_Company_receiving_FDI\" title=\"Q3.\u00a0 Is there any compliance required to be made by Company receiving FDI?\">Q3.\u00a0 Is there any compliance required to be made by Company receiving FDI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/know-about-foreign-direct-investment-in-india\/#Q_4_Can_anyone_bring_FDI_under_the_Approval_route_without_prior_approval_of_the_concerned_authority\" title=\"Q 4 Can anyone bring FDI under the Approval route without prior approval of the concerned authority?\">Q 4 Can anyone bring FDI under the Approval route without prior approval of the concerned authority?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/fdi-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9298\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/fdi-1.jpg\" alt=\"www.carajput.com; FDI\" width=\"946\" height=\"708\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\"><a href=\"https:\/\/carajput.com\/government-approval-for-fdi.php\">Foreign Direct Investment in India <\/a><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><span style=\"color: #000080;\"><strong>Introduction <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>FDI is the process whereby the residence of one country acquires the ownership of assets to control the production and other activities of the firm in another country (host country).<\/li>\n<li>By <a href=\"https:\/\/carajput.com\/government-approval-for-fdi.php\">FDI<\/a> host country get valuable investment and the host country get cheaper access to the product.<\/li>\n<li>It is an important factor to grow the local market by foreign investment. The company should do good market research before investing.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Basic_Requirement_%E2%80%93_Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\"><em>Basic Requirement &#8211; Foreign Direct Investment in India<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The minimum requirement, a firm will have to keep itself abreast of global trends in the industry. From a competitive perspective, it is important to be aware of the competitors are entering into the foreign market and how do they do that.<\/li>\n<li>A business decision also depends upon various key factors-<\/li>\n<li>Assessment of internal and other resources, competitiveness, and market analysis.<\/li>\n<li>Market expectations\n<ul>\n<li>It is also important to see how globalization is currently affecting the domestic industry.<\/li>\n<li>Seek the answer to these questions before investing-<\/li>\n<\/ul>\n<\/li>\n<li>has the company done enough market research in domains?<\/li>\n<li>is there a judgment in place of what level of resource utilization the investment will offer?<\/li>\n<li>if applicable, have all the relevant government agencies and concurred?<\/li>\n<\/ul>\n<p>Related Information :\u00a0<a href=\"https:\/\/carajput.com\/blog\/significant-changes-introduced-in-foreign-director-investment-policy\/\">significant-changes-introduced-in-foreign-director-investment-policy<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Route_of_Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\">Route of <em>Foreign Direct Investment in India<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9300\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/1.jpg\" alt=\"www.carajput.com; FDI\" width=\"980\" height=\"734\" \/><\/a><\/p>\n<ol>\n<li><span style=\"color: #000080;\"><strong><em>Automatic route &#8211; <\/em><\/strong><\/span>In this route, this is no approval from anybody is required. An investor can invest without any approval according to his need.<\/li>\n<li><strong><em><span style=\"color: #000080;\">Approval route<\/span> \u2013 <\/em><\/strong>approval of government is required before investing by this route.<\/li>\n<\/ol>\n<p>Also Read : <a href=\"https:\/\/carajput.com\/blog\/advantage-of-foreign-inward-remittance-certification-firc\/\">advantage-of-foreign-inward-remittance-certification-firc<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Foreign_Direct_Investment_in_India_in_Small_scale_Sector_Units\"><\/span><span style=\"color: #000080;\"><em>Foreign Direct Investment in India in Small scale Sector Units<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9304\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download.jpg\" alt=\"www.carajput.com; FDI in Small scale\" width=\"980\" height=\"593\" \/><\/a><\/p>\n<ul>\n<li>Not more than 24 percent in its paid-up capital from any industrial undertaking, whether it is foreign or domestic is accepted by a small-scale industry.<\/li>\n<li>If the equity from another company (including foreign equity) exceeds 24 percent, even if the investment in plant and machinery in the unit does not exceed Rs 10 million, the unit loses at its small-scale status and requires an industrial license to manufacture items reserved for small-scale sector.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"List_of_limit_for_Different_sector_for_Route_of_Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\">List of limit for Different sector for Route of <em>Foreign Direct Investment in India<\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 2336px;\" width=\"929\">\n<tbody>\n<tr>\n<td width=\"409\">Air Travel Services<\/p>\n<p>1.Non-scheduled and other civil aviation sector\u00a0services<\/p>\n<p>2. Scheduled services for air transport, Regional services for air transport<\/td>\n<td width=\"144\">&nbsp;<\/p>\n<p>100%<\/p>\n<p>Up to 49%<\/td>\n<td width=\"138\">&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Above 49%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Print\u00a0media<\/p>\n<p>1.Publication \/ Printing of Science and Professional Magazines \/ Specialized Journals \/ Reviews and International Newspaper Facsimile Edition<\/p>\n<p>2. Publishing foreign magazines dealing with news and current affairs in newspapers, periodicals and Indian editions<\/td>\n<td width=\"144\"><\/td>\n<td width=\"138\">&nbsp;<\/p>\n<p>100%<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>26%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Some Civil Aviation services<\/p>\n<p>1. Maintenance and Repair Organizations, Flying Training Institutions, Technical Training Institutions, etc.<\/p>\n<p>2. subject to sectoral legislation and security clearance for ground handling facilities<\/td>\n<td width=\"144\">&nbsp;<\/p>\n<p>100%<\/p>\n<p>&nbsp;<\/p>\n<p>100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Airports (Greenfield &amp; Brownfield)<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Biotechnology<\/p>\n<p>1. Brownfield<\/p>\n<p>2. Greenfield<\/td>\n<td width=\"144\">&nbsp;<\/p>\n<p>Up to 74%<\/p>\n<p>100%<\/td>\n<td width=\"138\">&nbsp;<\/p>\n<p>Above 74%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Motorists(Automobile)<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Components of Automobile<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Mining and mineral isolation of minerals and ores containing titanium, its addition of value and integrated operations<\/td>\n<td width=\"144\"><\/td>\n<td width=\"138\">100%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Pharmaceuticals<\/p>\n<p>1. Brownfield<\/p>\n<p>2. Greenfield<\/td>\n<td width=\"144\">&nbsp;<\/p>\n<p>Up to 74%<\/p>\n<p>100%<\/td>\n<td width=\"138\">&nbsp;<\/p>\n<p>Above 74%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Exploration and extraction of metal and non-metal minerals<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Carriage Services Broadcasting<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Content Broadcasting systems<\/td>\n<td width=\"144\"><\/td>\n<td width=\"138\">49%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Financial Items(Capital Goods)<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">\u00a0Healthcare<\/p>\n<p>1. Brownfield<\/p>\n<p>2. Greenfield<\/td>\n<td width=\"144\">&nbsp;<\/p>\n<p>Up to 74%<\/p>\n<p>100%<\/td>\n<td width=\"138\">&nbsp;<\/p>\n<p>Above 74%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Chemical<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Lignite &amp; Coal<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Development of Hospitals<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Defense<\/td>\n<td width=\"144\">Up to 74%<\/td>\n<td width=\"138\">Above 74%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Digital\u00a0Media<\/td>\n<td width=\"144\"><\/td>\n<td width=\"138\">26%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">\u00a0Duty Free Shops<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">\u00a0E-commerce Operations<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Processing of\u00a0Food<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Retail Trading for food products<\/td>\n<td width=\"144\"><\/td>\n<td width=\"138\">100%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">(Manufacturing) Crystals &amp; Jewellery<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">BPM and IT<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Telecom service<\/td>\n<td width=\"144\">Up to49%<\/td>\n<td width=\"138\">Above 49%<\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Garments &amp; Textiles<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Thermal Power<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Accommodation &amp; Tourism<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Retail Trading for\u00a0Single Brand Product<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Railways Infrastructure<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Energy from renewable sources<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Expressways &amp; Roads<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Natural Gas &amp; Petroleum<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Petroleum Refining(by PSUs)<\/td>\n<td width=\"144\">49%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Wholesale Cash &amp; Carry Trading \/ Wholesale Trading (including MSEs sourcing)<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Leather<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Shipping and Terminals<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Broadcast information services (Up-linking of TV Channels from Non-&#8216;News &amp; Current Affairs\/ Down-linking of TV Channels)<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Electronic systems<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Development of construction: townships, houses, built-up infrastructure<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Medical Equipment<\/td>\n<td width=\"144\">100%<\/td>\n<td width=\"138\"><\/td>\n<\/tr>\n<tr>\n<td width=\"409\">Multi Brand Trading for Retail<\/td>\n<td width=\"144\"><\/td>\n<td width=\"138\">51%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Sectoral_Limited_under_Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\"><strong><em>Sectoral Limited under <\/em><em>Foreign Direct Investment in India <\/em><em>\u00a0<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/fdi-in-retail-sector-5-638.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9308\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/fdi-in-retail-sector-5-638.jpg\" alt=\"www.carajput.com; FDI\" width=\"884\" height=\"663\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/fdi-in-retail-sector-5-638.jpg 638w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/fdi-in-retail-sector-5-638-300x225.jpg 300w\" sizes=\"(max-width: 884px) 100vw, 884px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Liberalization_of_FDI_in_India_Industries_permitted\"><\/span><span style=\"color: #000080;\"><strong>Liberalization of FDI in India (Industries permitted)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>FDI is allowed in certain jurisdictions with a ceiling on the overall allowable foreign holdings. Information of the same sectors in which FDI is subject to sector-specific caps are available at the various link:<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/images-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9310\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/images-2.jpg\" alt=\"www.carajput.com; FDI \" width=\"913\" height=\"923\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Strictly_prohibited_Industries_for_Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\">Strictly prohibited Industries for <\/span><span style=\"color: #000080;\"><strong><em>Foreign Direct Investment in India\u00a0<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_9309\" aria-describedby=\"caption-attachment-9309\" style=\"width: 818px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/carousel_Pro.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9309\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/carousel_Pro.jpg\" alt=\"www.carajput.com; FDI prohibition\" width=\"818\" height=\"342\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/carousel_Pro.jpg 818w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/carousel_Pro-300x125.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/carousel_Pro-768x321.jpg 768w\" sizes=\"(max-width: 818px) 100vw, 818px\" \/><\/a><figcaption id=\"caption-attachment-9309\" class=\"wp-caption-text\">www.carajput.com; FDI prohibition<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"New_policy_forbids_Foreign_Direct_Investment_in_India_in_the_following_categories\"><\/span><span style=\"color: #000080;\">New policy forbids <\/span><span style=\"color: #000080;\"><strong><em>Foreign Direct Investment in India <\/em><\/strong><\/span><span style=\"color: #000080;\">in the following categories:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Gaming and Betting<\/li>\n<li>Lottery sector (including government \/ private lottery, online lottery, etc.)<\/li>\n<li>Activities\/sectors not available to private sector investment (e.g. nuclear energy\/railways)<\/li>\n<li>Agricultural production (excluding floriculture, horticulture, apiculture, and cultivation of vegetables and mushrooms under controlled circumstances, growth and processing of seeds and planting materials, animal husbandry including dog breeding, wine-growing and aquaculture under controlled conditions and related services to the agro-and allied sectors)<\/li>\n<li>Trade-in retail (expected retailing of single-brand products)<\/li>\n<li>Chit fund Company<\/li>\n<li>Nidhi Company<\/li>\n<li>Real estate company or farmhouse construction<\/li>\n<li>Trade-in transferable development rights (TDRs)<\/li>\n<li>Production and Manufacture of tobacco, cigars, cheroots, cigarillos, cigarettes, and other tobacco substitutes<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"REASON_FOR_FOREIGN_INVESTMENT_DECISION\"><\/span><span style=\"color: #000080;\"><strong><em>REASON FOR FOREIGN INVESTMENT DECISION<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The cost of production of that product will be less in that country.<\/li>\n<li>For avoiding transportation costs the foreign direct investment is also made.<\/li>\n<li>The product gets the international image by foreign direct investment.<\/li>\n<li>For business expansion, foreign direct investment is also made.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"IMPACT_OF_FOREIGN_INVESTMENT_DECISION\"><\/span><span style=\"color: #000080;\"><strong><em>IMPACT OF FOREIGN INVESTMENT DECISION\u00a0<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9306\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download-2-1024x633.jpg\" alt=\"www.carajput.com; FDI\" width=\"958\" height=\"592\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download-2-1024x633.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download-2-300x185.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download-2-768x474.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/download-2.jpg 1491w\" sizes=\"(max-width: 958px) 100vw, 958px\" \/><\/a><\/p>\n<h4><span class=\"ez-toc-section\" id=\"POSITIVE_IMPACT_TO_HOST_COUNTRY_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>POSITIVE IMPACT TO HOST COUNTRY<\/strong><strong>\u00a0 &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>It brings an important factor of production for the host country.<\/li>\n<li>There is a transfer of technology by the FDI.<\/li>\n<li>Human resource development is possible by<\/li>\n<li>Employment generation is possible by FDI.<\/li>\n<li>Improvement in the balance of payment by FDI.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"POSITIVE_IMPACT_TO_HOME_COUNTRY%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>POSITIVE IMPACT TO HOME COUNTRY<\/strong><strong>&#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Increase in income of a home country.<\/li>\n<li>FDI helps in the learning skills of the employees.<\/li>\n<li>Good establishment of political relationship by FDI.<\/li>\n<li>There is an increase in export by FDI.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"NEGATIVE_IMPACT_TO_HOST_COUNTRY_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>NEGATIVE IMPACT TO HOST COUNTRY\u00a0 &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Lack of technology can be an issue for the host country.<\/li>\n<li>Increase in the competition by FDI<\/li>\n<li>Possibility of conflict in the decision.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"NEGATIVE_IMPACT_TO_HOME_COUNTRY_%E2%80%93\"><\/span><span style=\"color: #000080;\"><strong>NEGATIVE IMPACT TO HOME COUNTRY\u00a0 &#8211;<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>The exploitation of resources of the home country.<\/li>\n<li>The outflow of a factor of production by FDI.<\/li>\n<li>There is a loss of small industry by FDI.<\/li>\n<\/ul>\n<p>Read Also :\u00a0<a href=\"https:\/\/carajput.com\/blog\/rbi-introduced-mandatory-fdi-reporting-through-single-master-form-smf-2\/\">FDI reporting through single master<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"FAQ_on_Foreign_Direct_Investment_in_India\"><\/span><span style=\"color: #000080;\"><em><span style=\"color: #000080;\">FAQ on <a href=\"https:\/\/www.caindelhiindia.com\/blog\/implications-ma-more-secure-on-making-fdi-in-india-inflows\/\"><span style=\"font-size: 18.72px;\">Foreign<\/span> Direct Investment in India\u00a0\u00a0<\/a><\/span><\/em><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Q1_Is_100_FDI_is_possible_in_any_sector\"><\/span><span style=\"color: #000080;\"><strong>Q1.\u00a0 Is 100% FDI is possible in any sector?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Yes, RBI has allowed 100% FDI in almost every sector.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Q2_Is_FDI_is_allowed_in_any_industry_without_restriction\"><\/span><span style=\"color: #000080;\"><strong>Q2. Is FDI is allowed in any industry without restriction?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>No, there is a restriction for FDI in some sectors not even with approval.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Q3_Is_there_any_compliance_required_to_be_made_by_Company_receiving_FDI\"><\/span><span style=\"color: #000080;\"><strong>Q3.\u00a0 Is there any compliance required to be made by Company receiving FDI?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Yes, the company is required to file Form FCGPR for reporting FDI in India.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Q_4_Can_anyone_bring_FDI_under_the_Approval_route_without_prior_approval_of_the_concerned_authority\"><\/span><span style=\"color: #000080;\"><strong>Q 4 Can anyone bring FDI under the Approval route without prior approval of the concerned authority?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>No, the FDI must be brought into India after obtaining approval from the concerned authority.<\/p>\n<p style=\"padding-left: 40px;\">Related Information:\u00a0<a href=\"https:\/\/carajput.com\/blog\/fema-compliance-for-fdi-in-equity-share-in-india\/\">Fema Compliance for FDI in Equity Share in India<\/a><\/p>\n<p>In case of any issue or help, please email us at\u00a0<a href=\"mailto:info@hubco.in\">singh@carajput.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Direct Investment in India Introduction FDI is the process whereby the residence of one country acquires the ownership of assets to control the production and other activities of the firm in another country (host country). By FDI host country get valuable investment and the host country get cheaper access to the product. It is &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[9397,1980,9401,9400,9403,9399,9398],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/9297"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=9297"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/9297\/revisions"}],"predecessor-version":[{"id":22303,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/9297\/revisions\/22303"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=9297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=9297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=9297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}