India has been a most productive, profitable, and secure destination for FDI/ foreign investment. With rapid liberalisation of economy and increasing domestic consumption, it remains an attraction for foreign investment. We are valued partners in starting a business in India.
A Foreign entity willing to set up business operations in India has the following options:
- Investment under automatic route
- Investment through prior approval of Government
This can be achieved by:
FDI up to 100 per cent is allowed under the automatic route in all activities/sectors except to those specified by Government of India from time to time. FDI in sectors/activities to the extent permitted under the automatic route does not require any prior approval either of the Government or the Reserve Bank of India.
FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance. Indian companies having foreign investment approval through FIPB route do not require any further clearance from the Reserve Bank of India for receiving inward remittance and for the issue of shares to the non-resident investors.
Prohibited sectors for investments:
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
- Retail Trading (except single brand product retailing).
- Atomic Energy
- Lottery Business
- Gambling and Betting
- Business of Chit Fund
- Nidhi Company
- Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations).
- Housing and Real Estate business (except development of townships, construction of residential/commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships to the extent specified).
- Trading in Transferable Development Rights (TDRs)
- Manufacture of cigars , cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.