FDI policy and regulations applicable in various sectors
Summary of the policy on FDI (Foreign Direct Investment) was notified vide Press Note 4 (2006).
Thereafter, further policy revisions were issued vide Press Note 5(2006) and Press Note 2 (2007) and 3(2007). A comprehensive review of the FDI policy was undertaken in 2007-08 and the policy measures were notified vide Press Note 1-6 (2008). FDI policy and regulations applicable in various sectors and activities after incorporating the policy changes up to 31-3-2008 is as below: POLICY ON FOREIGN DIRECT INVESTMENT (as on 31st March 2008)
Sectors prohibited for FDI
i. Retail Trading (except single brand product retailing) ii. Atomic Energy iii. Lottery Business iv. Gambling and Betting v. Business of chit fund vi. Nidhi Company
vii. Trading in Transferable Development Rights (TDRs). viii. Activity/sector not opened to private sector investment II. Sector-specific policy for FDI: In the following sectors/activities, FDI is allowed up-to the limit indicated below subject to other conditions as indicated.
|Sr. |Sector/Activity |FDI Cap / |Entry |Other conditions | |No. | |Equity |Route | | |I |AGRICULTURE | |1. |Floriculture, Horticulture, |100% |Automatic | | | |Development of Seeds, Animal | | | | | |Husbandry, Pisciculture, | | | | | |Aqua-culture and Cultivation | | | | | |of Vegetables & Mushrooms | | | | | |under controlled conditions | | | | | |and services related to agro | | | | | |and allied sectors. | | | | | | | | | | | |Note: Besides the above, FDI | | | | | |is not allowed in any other | | | | | |agricultural sector/activity | | | | |2. |Tea Sector, |100% |FIPB |Subject to divestment of 26% equity in | | |including tea | | |favour of Indian partner/Indian public | | |plantation | | |within 5 years and prior approval of | | |Note: Besides the above, FDI | | |State Government concerned in case of | | |is not allowed in any other |...
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