Indiasectors-table.md
Bundled with India FDI Approval Assessment · references/sectors-table.md
NDI Rules 2019 — Schedule I Sector Table
Source: Foreign Exchange Management (Non-debt Instruments) Rules, 2019, Schedule I, as amended. Always verify each entry against the current version of the NDI Rules PDF before completing any assessment. This table is a reference summary — not a substitute for the authoritative statutory text.
Prohibited Sectors — Schedule I(2)
FDI is absolutely prohibited (not merely restricted) in:
- Lottery business of any kind (including government lotteries and online lotteries)
- Gambling and betting, including casinos
- Chit funds
- Nidhi companies
- Trading in Transferable Development Rights (TDRs)
- Real estate business or construction of farm houses (Note: development of townships, construction of residential/commercial premises, roads, bridges, and hotels/hospitals is permitted — it is real estate trading/ brokerage and farm house construction that is prohibited)
- Manufacturing of cigars, cheroots, cigarillos, or cigarettes of tobacco or tobacco substitutes
- Atomic energy (activities in the atomic energy sector are governed by the Atomic Energy Act, 1962 and are reserved for the Government — FDI is not permitted)
- Railway operations (Note: construction and maintenance of railway infrastructure is permitted — it is the operation of railways that is prohibited)
Permitted Sectors — Schedule I(3)
AGRICULTURE AND ANIMAL HUSBANDRY
| Activity | Cap | Route |
|---|---|---|
| Floriculture, horticulture, apiculture, vegetable/mushroom cultivation (controlled conditions) | 100% | Automatic |
| Development of seeds and planting material | 100% | Automatic |
| Animal husbandry including breeding | 100% | Automatic |
| Pisciculture, aquaculture, agro-allied services | 100% | Automatic |
FDI not permitted in agricultural land.
PLANTATION (including tea)
| Activity | Cap | Route |
|---|---|---|
| Plantation sector including tea | 100% | Automatic |
Attendant conditions:
- Within five years of the FDI being made, the investee company must divest 26% of its equity to an Indian partner or to the Indian public
- Any future change in use of plantation land requires prior approval of the relevant State Government
- Note: Failure to comply with the divestment condition is a FEMA violation. Build into transaction documents.
MINING
| Activity | Cap | Route |
|---|---|---|
| Metal and non-metal ores (including diamond, gold, silver, precious stones) | 100% | Automatic |
| Coal and lignite mining for captive consumption | 100% | Automatic |
| Titanium-bearing minerals and mineral separation | 100% | Government Approval |
Attendant conditions: Compliance with Mines and Minerals (Development and Regulation) Act, 1957 and all environmental clearances. For titanium: value addition and divestment conditions as specified in the Government approval.
PETROLEUM AND NATURAL GAS
| Activity | Cap | Route |
|---|---|---|
| Exploration activities, pipelines, marketing (private sector) | 100% | Automatic |
| Petroleum refining by PSUs | 49% | Automatic |
Attendant conditions: For PSU refining — no disinvestment or dilution of domestic equity in existing PSUs. Pricing and operational conditions per Ministry of Petroleum.
MANUFACTURING
| Activity | Cap | Route |
|---|---|---|
| Manufacturing (general) | 100% | Automatic |
Attendant conditions: No sector-specific conditions for general manufacturing. Where the manufacturing activity relates to defence items, the defence sector rules apply instead.
DEFENCE
| Activity | Cap | Route |
|---|---|---|
| Defence manufacturing — up to 74% | 74% | Automatic |
| Defence manufacturing — above 74% | 100% | Government Approval (Cabinet Committee on Security) |
Attendant conditions (all percentages):
- Industrial licence required under the Industries (Development and Regulation) Act, 1951
- Investee company incorporated in India; management in Indian hands; majority of directors must be Indian nationals; Chief of Security must be an Indian national
- Investor should be an OEM or entity designated by the Ministry of Defence
- Any change in foreign ownership or control of a licensed defence company requires fresh Government approval
- Products must be on the Ministry of Defence approved list
- Compliance with Defence Acquisition Procedure
BROADCASTING
| Activity | Cap | Route |
|---|---|---|
| FM Radio / Terrestrial Broadcasting | 26% | Government Approval |
| News and Current Affairs TV Channels (up-linking/down-linking) | 49% | Government Approval |
| Non-news TV Channels, Cable Networks, DTH — up to 49% | 49% | Automatic |
| Non-news TV Channels, Cable Networks, DTH — above 49% | 100% | Government Approval |
| Mobile TV, HITS Broadcasting | 100% | Automatic |
Attendant conditions: Ministry of Information & Broadcasting compliance; Programme Code and Advertising Code; Cable TV Networks (Regulation) Act, 1995. No entity of Pakistani origin permitted in DTH, cable networks, or news/current affairs TV channels.
PRINT MEDIA
| Activity | Cap | Route |
|---|---|---|
| Newspapers and periodicals dealing with news and current affairs | 26% | Government Approval |
| Indian editions of foreign news/current affairs magazines | 26% | Government Approval |
| Scientific, technical, specialty magazines and journals | 100% | Automatic |
Attendant conditions (news/current affairs): FDI must be made directly into the Indian publishing entity; at least three-fourths of the directors and all key executives must be resident Indian citizens; compliance with Press and Registration of Books Act, 1867 and Press Council Act, 1978.
CIVIL AVIATION
| Activity | Cap | Route |
|---|---|---|
| Airports — greenfield | 100% | Automatic |
| Airports — brownfield — up to 74% | 74% | Automatic |
| Airports — brownfield — above 74% | 100% | Government Approval |
| Scheduled domestic air transport — Indian carriers — up to 49% | 49% | Automatic |
| Scheduled domestic air transport — Indian carriers — above 49% | 100% | Government Approval |
| NRI investment in scheduled domestic air transport | 100% | Automatic |
| Foreign airlines investing in Indian carriers | 49% | Automatic |
| Helicopter services, non-scheduled air transport | 100% | Automatic |
| Ground handling, MRO, flying training institutes | 100% | Automatic |
Attendant conditions: Compliance with Aircraft Act, 1934 and Aircraft Rules, 1937; DGCA permissions required. Foreign airlines cannot invest in Air India. No Pakistani national or entity permitted.
CONSTRUCTION DEVELOPMENT
(townships, housing, commercial premises, hotels, hospitals)
| Activity | Cap | Route |
|---|---|---|
| Construction development | 100% | Automatic |
Attendant conditions:
- Minimum capitalisation: USD 10 million for a wholly-owned subsidiary; USD 5 million for a joint venture — to be brought in within six months of commencing business
- Minimum built-up area: 20,000 sq. m. (5,000 sq. m. for hotels, hospitals, SEZs)
- 30% of project cost to be used for affordable housing
- Original foreign investment cannot be repatriated before project completion; exit permitted through secondary market sale to another non-resident, or where the project has received credit facilities from scheduled banks
- Three-year lock-in from date of each tranche of FDI (not applicable to hotels, hospitals, SEZs)
- Compliance with Real Estate (Regulation and Development) Act, 2016
Note: FDI-linked performance conditions apply. A FOCC structured as an LLP cannot invest in this sector.
TELECOM
| Activity | Cap | Route |
|---|---|---|
| Telecom services and infrastructure | 100% | Automatic |
Attendant conditions: Licence from Department of Telecommunications (DoT) required; security clearance required; special vetting for vendors from land border countries; compliance with Indian Telegraph Act, 1885.
TRADING
| Activity | Cap | Route |
|---|---|---|
| Single Brand Retail Trading (SBRT) | 100% | Automatic |
| Multi-Brand Retail Trading (MBRT) | 51% | Government Approval |
| Cash and Carry Wholesale Trading | 100% | Automatic |
SBRT attendant conditions:
- Only one brand permitted; same brand sold internationally; branding must have occurred during manufacturing
- Above 51% FDI: mandatory 30% sourcing from India (MSMEs, village/cottage industries, artisans, craftsmen) from the fifth year of commencement of business
- Note: 30% sourcing is an FDI-linked performance condition — a FOCC-LLP cannot invest in SBRT above 51%.
MBRT attendant conditions:
- Minimum FDI of USD 100 million; at least 50% of total FDI to be invested in backend infrastructure within three years
- Minimum 30% of goods sourced from Indian small industries (plant and machinery investment not exceeding USD 2 million)
- Retail sales only through physical stores; State Government permission required
- Permitted only in cities with population above 10 lakh (2011 Census)
- Note: Significant FDI-linked performance conditions. FOCC-LLP cannot invest here.
FINANCIAL SERVICES
| Activity | Cap | Route |
|---|---|---|
| Banks — private sector — up to 49% | 49% | Automatic |
| Banks — private sector — above 49% | 74% | Government Approval |
| Banks — public sector (other than RBI) | 20% | Government Approval |
| NBFCs (non-banking financial companies) | 100% | Automatic |
| Insurance (life, general, health, reinsurance) | 74% | Automatic |
| Pension | 49% | Automatic |
| Asset Reconstruction Companies (RBI-registered ARCs) | 100% | Automatic |
| Stock exchanges, depositories, clearing corporations | 49% | Automatic |
| Commodity exchanges | 49% | Automatic |
| Credit Information Companies | 74% | Automatic |
Financial services — catch-all: Financial services activities not falling under any specific entry in Schedule I → Government Approval required, regardless of stake. Legal basis: Schedule I(3)(b)(iii), NDI Rules.
Investing companies:
- Not registered as NBFC or CIC → Government Approval required at all percentages
- Registered as NBFC → 100% Automatic Route Legal basis: Schedule I(3)(b)(v)(A) and (B), NDI Rules. "Investing company" means an Indian company that holds only investments in other Indian companies other than as a business: Rule 2(ab).
Attendant conditions: Banks — RBI licensing, Banking Regulation Act 1949, fit and proper criteria. Insurance — IRDAI registration, Insurance Act 1938. NBFCs — RBI registration, applicable master directions. Pension — PFRDA registration. Commodity exchanges — no Pakistani investment; SEBI approval required.
PHARMACEUTICALS
| Activity | Cap | Route |
|---|---|---|
| Greenfield | 100% | Automatic |
| Brownfield — up to 74% | 74% | Automatic |
| Brownfield — above 74% | 100% | Government Approval |
Attendant conditions (brownfield above 74%): DPIIT must be satisfied that the acquisition will not adversely affect supply of essential drugs at affordable prices; manufacturing facilities must comply with WHO-GMP standards; compliance with Drugs and Cosmetics Act, 1940.
Note: Government Approval above 74% brownfield is an FDI-linked approval condition. A FOCC-LLP cannot make a downstream investment in a brownfield pharma investee company if the resulting stake would exceed 74%.
E-COMMERCE
| Activity | Cap | Route |
|---|---|---|
| E-commerce — marketplace model only | 100% | Automatic |
FDI is not permitted in inventory-based e-commerce.
Attendant conditions: The marketplace entity cannot directly or indirectly influence sale price; no more than 25% of sales from one vendor or its group companies in a financial year; marketplace cannot offer warranties on products sold on its platform; no preferential treatment for related party vendors; no distortive cash-back arrangements through group companies.
MEDICAL DEVICES
| Activity | Cap | Route |
|---|---|---|
| Medical devices (manufacturing and services) | 100% | Automatic |
Attendant conditions: Compliance with Medical Devices Rules, 2017; CDSCO registration as applicable.
PRIVATE SECURITY AGENCIES
| Activity | Cap | Route |
|---|---|---|
| Up to 49% | 49% | Automatic |
| Above 49% | 74% | Government Approval |
Attendant conditions: Compliance with Private Security Agencies (Regulation) Act, 2005; State Government licensing.
SATELLITES
| Activity | Cap | Route |
|---|---|---|
| Establishment and operation of satellites | 74% | Government Approval |
| Manufacturing of satellite and ground/user segment equipment | 100% | Automatic |
Attendant conditions: Department of Space and IN-SPACe approvals required; security clearance required; compliance with Space Activities Act.
Default Rule
If the investee company's sector is not listed in Schedule I of the NDI Rules, 100% FDI under the Automatic Route applies.
Always verify each entry live against the NDI Rules PDF provided and conduct a web search for any recent DPIIT press notes, clarifications, or amendments before completing the sectoral assessment. This table reflects the NDI Rules as amended; sector entries are subject to change by Government notification.