Foreign Investment Eligibility
Check FDI permissibility, route (automatic / approval) and sectoral caps.
Check sectoral caps and entry routes for Foreign Direct Investment under the FEMA Non-Debt Instruments Rules, 2019 (as amended by Second Amendment Rules, 2026 notified 2 May 2026) and the Consolidated FDI Policy by DPIIT.
| Sector | FDI Cap | Route | Conditions |
|---|---|---|---|
| Lottery business / gambling / betting / casinos | PROHIBITED | Prohibited | No FDI permitted in any form. |
| Chit funds | PROHIBITED | Prohibited | No FDI permitted. |
| Nidhi company | PROHIBITED | Prohibited | No FDI permitted. |
| Real estate business (other than construction-development) | PROHIBITED | Prohibited | Trading in TDRs prohibited. Construction-development permitted up to 100%. |
| Atomic energy / minerals (specified) | PROHIBITED | Prohibited | Reserved for public sector. |
| Tobacco - cigarettes / cigars manufacture | PROHIBITED | Prohibited | No FDI permitted. |
| Insurance companies and intermediaries | 100% | Automatic | Liberalised to 100% by FEMA NDI 2nd Amendment Rules, 2026 (notified 2 May 2026). LIC capped at 20% under automatic route. |
| Space sector - satellite manufacturing and operations | 100% | Automatic | Liberalised in 2024. |
| Manufacturing (most subsectors) | 100% | Automatic | Including pharmaceuticals (greenfield), automobiles, food processing. |
| IT / ITeS / BPO | 100% | Automatic | Most service sectors. |
| Single-brand retail (online or offline) | 100% | Automatic | Above 51% requires 30% local sourcing condition (5 years). |
| E-commerce (marketplace model only) | 100% | Automatic | Inventory-based B2C e-commerce NOT permitted. |
| Mining (most minerals other than restricted) | 100% | Automatic | Coal / lignite by 100% subsidiaries permitted. |
| Construction-development (townships / housing / built-up) | 100% | Automatic | Subject to lock-in and exit conditions. |
| LLP (sectors with 100% automatic FDI and no performance conditions) | 100% | Automatic | Subject to specific LLP conditions. |
| Multi-brand retail trading | 51% | Approval | Currently 51% with conditions; some states have opted out. |
| Print media (newspapers / periodicals on news and current affairs) | 26% | Approval | Below 26% only. |
| News broadcasting (uplinking / TV news channels) | 49% | Approval | Approval route, capped at 49%. |
| Defence manufacturing | 74% / 100% | Auto up to 74%, Approval above | 74% automatic; above requires Govt approval (case-by-case for modern tech). |
| Telecom services | 100% | Auto up to 49%, Approval above | Above 49% requires Govt approval. |
| Pharmaceuticals - brownfield | 100% | Auto up to 74%, Approval above | Brownfield acquisitions above 74% require Govt approval. |
| Banking - private sector | 74% | Auto up to 49%, Approval above | Above 49% requires Govt approval; voting rights capped at 26%. |
| Banking - public sector | 20% | Approval | Capped at 20% under approval route. |
| Air transport - scheduled airlines | 100% | Auto up to 49%, NRI/OCI 100% auto | Above 49% requires Govt approval (foreign airlines limited to 49%). |
| Digital media (uploading news on digital channels) | 26% | Approval | Capped at 26% via approval route. |
| Investments from land-bordering countries (China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, Afghanistan) | All | Government Approval | Per Press Note 2/2026 Series (effective May 2026): triggered by significant beneficial ownership, not minimal shareholding. All sectors require prior govt approval if beneficial ownership traces to these countries. |
Reporting requirements for FDI:
- FC-GPR: File within 30 days of share allotment via RBI FIRMS portal (firms.rbi.org.in).
- FC-TRS: File within 60 days where shares are transferred between a resident and a non-resident.
- Form FLA: Annual return on Foreign Liabilities and Assets - due 15 July for the previous FY.
- Form DI / Form InVI: For convertible debt instruments and investment vehicles.
- Late filings attract Late Submission Fee (LSF) per the RBI matrix - varies by delay duration and amount.
Land-bordering countries (China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, Afghanistan):
Per Press Note 2/2026 Series (effective 1 May 2026), the trigger for prior government approval is now significant beneficial ownership per the PMLA, 2002 definition (i.e. 10%+ ownership or effective control), not minimal shareholding. Even indirect / layered ownership structures and future transfers that shift beneficial ownership to these countries require approval. RBI reporting obligations apply even where approval is not triggered.
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.
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