FDI in India can be undertaken through
two routes:
1. Automatic Route :
Majority of the sectors under the Automatic route.
Illustrative list where 100% FDI permitted under the Automatic
route:
|
Manufacturing
|
Infrastructure
|
Services |
| |
|
|
Food processing
|
Electricity generation, transmission and distribution
|
Hospitals |
Electronic hardware
|
Mass Rapid Transport System
|
Software development |
Pollution control and management
|
Roads and highways
|
Tourism |
Drugs and pharmaceuticals
|
Vehicular bridges
|
Engineering services |
Automobiles and ancillaries
|
Ports and harbours
|
Architectural services |
2. Government Approval Route:
Prior government (ie Foreign Investment Promotion
Board) (‘FIPB’) approval needed. The approval
required for FDI in the following cases:
i. Where provisions of Press Note 1(2005
Series) are attracted; or
ii. Proposals for foreign equity beyond
24% in SSI reserved sector; and
iii. Proposals falling outside notified
sectoral policy/ caps
Decision generally communicated within 6-8 weeks. Intimation
as mentioned in automatic approval route still needs to
be complied with.