• Invest in India
  • Corporate Legal Services

Sectoral Caps Basics

The radical changes in the FDI policy have been brought in by the GoI to attract inflow of Foreign Exchange in the Indian market and for creation of employment and job opportunities in India. The Sectoral Cap is elucidated below:-

 

Sl. No.

Sector

FDI Limits

1. Defence Sector

Upto 49% – Automatic Route

Beyond 49% till 100% – Government Approval on case to case basis.

* Condition of access to ‘state of art’ technology has been done away with.

** FDI for defence has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act, 1959.

2.

Broadcasting Carriage Services

  • Teleports
  • Direct to Home
  • Cable Networks
  • Mobile TV
  • Headend-in-the Sky Broadcasting Services
100% Automatic Route
3. Pharmaceutical – Brownfield Projects

 

Upto 74% – Automatic Route

Beyond 74% upto 100% – Government Approval

 

4. Civil Aviation – Brownfield Airport Projects

 

100% – Automatic Route

 

5. Civil Aviation – Scheduled Air Transport Service / Domestic Scheduled Passenger Airline and Regional Air Transport Service. Upto 49% – Automatic Route

Beyond 49% upto 100% – Government Approval

 

* Foreign airlines can invest up to the limit of 49% of their paid up capital and subject to the conditions laid down in the existing FDI policy.

 

6. Private Security Agencies

 

Upto 49% – Automatic Route

Beyond 49% upto 74% – Government Approval

 

7. Animal Husbandry

 

Requirement of “Controlled Conditions” has been done away with.

 

8. Single Brand Retail Trading (SBRT)

Upto 49% – Automatic Route

Beyond 49% upto 100% – Government Approval

* following conditions have been relaxed:

  • local sourcing norms relaxed upto 3 years
  • Sourcing regime relaxed upto 5 years for entities undertaking SBRT of products having ‘state of the art’ and ‘cutting edge’ technology.

 


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