Doing business in India

- FDI approvals

Total FDI inflows in the country in the last 23 years (April 2000 - September 2023) are $953. Out of total FDI flows, FDI equity inflow received during FY 2023-24 stood at USD 44.4 billion. The equity inflows for the quarter January 2024 to March 2024 stood at USD 12 billion registering a 33 per cent year-on-year growth.

Top 5 sectors receiving highest FDI Equity Inflow during FY 2023-24 are Services Sector (Finance, Banking, Insurance, Non Fin/ Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (16%), Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%) and Automobile Industry (5%).

There are two routes governing FDI into India: (i) the automatic route and (ii) the government approval route. Whether an investor proceeds via one route or the other would depend largely on the sector in which the investee entity falls as well as the quantum value of the investment.

100 per cent automatic route - Agriculture, plantation, mining, petroleum & natural gas, automotive, airports, biotechnology (greenfield), broadcasting, broadcast content services, chemicals, education, e- commerce activities, construction development-townships, housing, built-up infrastructure, food processing, healthcare (greenfield), IT/BPM, industrial parks, trading, Single Brand Product Retail Trading, duty free shops, railway infrastructure, financial services, among others.

Up to 100 per cent automatic route - Infrastructure company in the securities market, Insurance, medical devices, pension, petroleum refining (by PSUs), power exchanges.

Up to 100 per cent govt. and automatic route -  Banking (private sector), biotechnology (brownfield), defence, healthcare (brownfield), pharmaceuticals (brownfield), private security agencies, telecom services, multi brand retail trading.

Up to 100 percent under government route - Banking (public sector), food products retail trading, core investment company, investment by foreign airlines, multi-brand retail trading,Satellites - establishment and operation, print media, among others.

Source: https://static.investindia.gov.in/2020-10/FDI-PolicyCircular-2020.pdf

https://www.investindia.gov.in/foreign-direct-investment

Useful Links

National portal of India - https://www.india.gov.in/india-glance

National Government Services Portal - https://services.india.gov.in/

Ministry of External Affairs - https://mea.gov.in/

Ministry of Commerce and Industry  - https://commerce.gov.in/

Department for Promotion of Industry and Internal Trade (DPIIT) -  https://dpiit.gov.in/

Directorate General of Foreign Trade (DGFT) - https://www.dgft.gov.in/CP/

Invest India- https://www.investindia.gov.in/

Make in India - http://www.makeinindia.com/home

Central Public Procurement Portal/India Investment Grid - https://eprocure.gov.in/eprocure/app

India Brand Equity Foubndation (IBEF) - https://www.ibef.org/

(ITPO) India Trade Promotion Organisation - https://www.indiatradefair.com/

(TPCI) Trade Promotion Council of India - https://www.tpci.in/

(ASSOCHAM) Associated Chambers of Commerce and Industry of India - https://www.assocham.org/about-us.php

Travel & Tourism - http://tourism.gov.in/