Ministry of External Affairs		Contact us			Home
Ambassador		Embassy		Passport	Visa		Schemes & Scholarships		Gallery	GoI Links
India-Israel Relations			FOREIGN DIRECT INVESTMENT (FDI) POLICY Policy on Foreign Direct Investment India has among the most liberal and transparent policies on FDI among the emerging economies. FDI up to 100% is allowed under the automatic route in all activities/sectors except the following, which require prior approval of the Government: 1. Sectors prohibited for FDI 2. Activities/items that require an industrial license 3. Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field 4. Proposals for acquisitions of shares in an existing Indian company in financial service sector and where Securities and Exchange Board of India (substantial acquisition of shares and takeovers) regulations, 1997 is attracted. 5. All proposals falling outside notified sectoral policy/ CAPS under sectors in which FDI is not permitted. Most of the sectors fall under the automatic route for FDI. In these sectors, investment could be made without approval of the central government. The sectors that are not in the automatic route, investment requires prior approval of the Central Government. The approval in granted by Foreign Investment Promotion Board (FIPB). In few sectors, FDI is not allowed. There are two routes for FDI approvals: 1. The Automatic route via Reserve Bank of India (RBI) 2. Foreign Investment Promotion Board route (FIPB route) 1. Automatic Route No prior approval is required for FDI under the Automatic Route. Only information to the RBI within 30days of inward remittances or issue of shares to Non Residents is required. RBI has prescribed a new form, Form FC-GPR (instead of earlier FC-RBI) for reporting shares issued to the Foreign Investors by an Indian company. For details please contact: Chief General Manager, Reserve Bank of India, Foreign Investment and Technology Transfer Division, Exchange Control Department, Shaheed Bhagat Singh Road, Mumbai – 400001. Tel.:+ 91-22-2266 1603 Fax + 91-22-2266 5330 2. FIPB route - Government Approval Foreign Investment proposed not covered under the ‘Automatic Route’ are considered for Governmental Approval on the recommendations of the Foreign Investment Promotion Board (FIPB). Application for such cases are to be submitted in FC/IL form or on plain paper to Foreign Investment Promotion Board (FIPB) in Department of Economic Affairs, Ministry of Finance, Government of India North Block, New Delhi 110 001. Application can be made in Form FC-IL. Plain paper applications carrying all relevant details are also accepted. No fee is payable. The guidelines for consideration of FDI proposals by the FIPB are at Annexure-III of the Manual for FDI. Form FC-IL - COMPOSITE FORM FOR FOREIGN COLLABORATION AND INDUSTRIAL LICENCE http://siadipp.nic.in/download/il-form.doc IEM Form http://siadipp.nic.in/policy/policy/ip202.htm Manual for FDI http://www.dipp.nic.in/manual/FDI_Manual_Latest.pdf Prohibited Sectors The extant policy does not permit FDI in the following cases: i. Gambling and betting ii. Lottery Business iii. Atomic Energy iv. Retail Trading v. Agricultural or plantation activities of Agriculture (excluding Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisiculture and Cultivation of Vegetables, Mushrooms etc., under controlled conditions and services related to agro and allied sectors) and Plantations (other than Tea Plantations). INVESTMENT FACILITATION Secretariat for Industrial Assistance (SIA) in Department of Industrial Policy and Promotion, Government of India provides a single window service for entrepreneurial assistance, Investor facilitation and monitoring implementation of the projects. Secretariat for Industrial Assistance (SIA) Department of Industrial Policy and Promotion Ministry of Commerce & Industry Udyog Bhavan, New Delhi-110 011 Email: dipp_sia@ub.nic.in Tel.: +91-11-23011983 Fax : +91-11-23011034 Source: Department of Industrial Policy and Promotion, http://dipp.nic.in
Trade & Commerce Indian Economy Economic Indicators FDI Policy and Regulations Entry Strategy for Investors High potential Sectors Assistance for Investors Bilateral Trade Relations Upcoming Events Resource Centre Tenders
Indian Community in Israel
India Tourism
Events and Speeches
Publications
Feedback
Sitemap
Website designed and managed by Information Wing, Embassy of India. External links to other Internet sites should not be construed as an endorsement of the views contained therein.