Complete guide to Foreign Direct Investment (FDI) in India. Learn about FDI policies, automatic route vs government route, sector-wise FDI limits, compliance requirements, and get expert assistance for your foreign investment.
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Key sectors and their FDI limits
Automatic Route
Automatic Route
Automatic Route
Automatic Route
Automatic Route
Automatic (100% with approval) Route
Automatic Route
Government Route
Automatic Route
FDI refers to investment by a foreign entity in an Indian company. It can be in the form of equity capital, reinvested earnings, or other capital. FDI is regulated by the Foreign Exchange Management Act (FEMA) and FDI Policy.
There are two routes: Automatic Route (no prior approval required) and Government Route (prior approval from government required). Most sectors allow 100% FDI under automatic route.
Most sectors allow 100% FDI under automatic route including IT, manufacturing, services, trading, e-commerce, and many others. Sectors like defense, media, and certain services may have restrictions or require government approval.
Automatic route allows FDI without prior approval - just post-investment reporting to RBI. Government route requires prior approval from the concerned ministry or department before making the investment.
No prior RBI approval is required for FDI under automatic route. However, post-investment reporting to RBI is mandatory through FC-GPR filing within 30 days of share issuance.
FC-GPR (Foreign Currency-Gross Provisional Return) is filed with RBI within 30 days of share issuance to report foreign investment. It is mandatory for all foreign investments in Indian companies.
Yes, some sectors have restrictions: Defense (74% automatic, 100% with approval), Media (26-49% depending on type), Insurance (74%), Banking (varies), and a few others. Most sectors allow 100% FDI.
FDI compliance includes: FC-GPR filing within 30 days, FC-TRS filing for share transfers, annual returns to RBI, and compliance with sector-specific regulations. Non-compliance can result in penalties.
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