FDI in India: Sector-Wise Guide for Foreign Investors (2026)

Published Fri, 01 May 2026 | Updated Fri, 01 May 2026 FEMA

FDI in India: Complete Sector-Wise Guide for Foreign Investors

India is one of the world's most open FDI destinations, with over 90% of inflows arriving through the automatic route, no prior government approval required. But certain strategic sectors still require government clearance, and a handful are entirely prohibited. For any foreign national or company planning to invest or set up a business in India, understanding the sector-specific rules is essential.

This guide lays out every major sector, its FDI cap, and the applicable entry route — all in one place.

The Two Routes: Automatic vs. Government Approval

Automatic Route

No prior approval from the government or the Reserve Bank of India (RBI) is required. The foreign investor simply brings in funds, allots equity within 60 days, and files an intimation with the RBI. Faster and simpler — used in over 90% of FDI into India.

Government / Approval Route

Prior approval is mandatory from the competent authority — either a specific Ministry or the RBI. Applications are filed via National Single Window System at https://www.nsws.gov.in/ Required for sensitive or strategic sectors.

Sectors Prohibited for FDI

Investment by any person resident outside India is prohibited for certain specific sectors in India which are as follows:

Lottery Business including Government/ private lottery, online lotteries.
Gambling and betting including casinos.
Chit funds
Nidhi Company.
Trading in Transferable Development Rights (TDRs).
Real Estate Business or Construction of Farm Houses excluding development of townships, construction of residential/ commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations, 2014
Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
Activities/ sectors not open to private sector investment viz., (i) Atomic energy and (ii) Railway operations
Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting activities

Sector Permitted in FDI

In India, 100% FDI is allowed under automatic route in most of the permitted sectors and in certain other sectors, FDI is allowed on percentage basis.

Activity Sector	FDI Limit		Entry Route
Agriculture and Animal Husbandry Floriculture, Horticulture, and Cultivation of Vegetables & Mushrooms under controlled conditions; Development and Production of seeds and planting material; Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, Apiculture; and Services related to agro and allied sectors Note: Besides the above, FDI is not allowed in any other agricultural sector/activity	100%		Automatic
Plantation Sector Tea sector including tea plantations; Coffee plantations; Rubber plantations; Cardamom plantations; Palm oil tree plantations; Olive oil tree plantations *Note: Besides the above, FDI is not allowed in any other plantation sector/ activity*	100%		Automatic
Mining Mining and Exploration of metal and non-metal ores including diamond, gold, silver and precious ores but excluding titanium bearing minerals and its ores	100%		Automatic
Mining (Coal & Lignite)	100%		Automatic
Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities	100%		Government
Petroleum & Natural Gas Exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products etc.	100%		Automatic
Petroleum & Natural Gas Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs.	49%		Automatic
MANUFACTURING Manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on Principal to Principal or Principal to Agent basis. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval.	100%	Automatic Route
retail trading, including through e-commerce, in respect of food products manufactured and/or produced in India.	100%	Government Route
Defence	100%		Automatic up to 74% Government route beyond 74% wherever it is likely to result in access to modern technology or for other reasons to be recorded
SERVICE SECTOR
Broadcasting Carriage Services Teleports(setting up of up-linking HUBs/Teleports) Direct to Home (DTH) Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradationof networks towards digitalization and addressability Mobile TV Head end-in-the Sky Broadcasting Service(HITS)	100%		Automatic
Broadcasting Carriage Services Cable Networks (Other MSOs not undertaking up gradation of networks towards digitalization and addressability and Local Cable Operators (LCOs)	100%		Automatic
Broadcasting Content Services Terrestrial Broadcasting FM(FM Radio) Up-linking of ‘News & Current Affairs’ TV Channels	49%		Government
Broadcasting Content Services Uploading/Streaming of News & Current Affairs through Digital Media	26%		Government
Broadcasting Content Services Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels	100%		Automatic
Print Media Publishing of newspaper and periodicals dealing with news and current affairs Publication of Indian editions of foreign magazines dealing with news and current affairs	26%		Government
Publishing/printing of scientific and technical magazines/specialty journals/ periodicals,	100%		Government
Publication of facsimile edition of foreign newspapers	100%		Government
Civil Aviation- Airports Greenfield projects Existing projects	100%		Automatic
Civil Aviation- Air Transport Services Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline Regional Air Transport Service	100%		Automatic up to 49% (Automatic up to 100% for NRIs) Government route beyond 49%
Civil Aviation- Air Transport Services Non-Scheduled Air Transport Services Helicopter services/seaplane services requiring DGCA approval Ground Handling Services Maintenance and Repair organizations; flying training institutes; and technical training institutions	100%		Automatic
Construction Development: Townships, Housing, Built-up Infrastructure	100%		Automatic
Industrial Parks -new and existing	100%		Automatic
Satellites- Manufacturing and Operation Satellite Data Products Ground Segment and User Segment	100%		Upto 74%: Automatic Beyond 74%: Government Route
Launch Vehicles and associated systems or subsystems Creation of Spaceports for launching and receiving Spacecraft	100%		Upto 49%: Automatic Beyond 49%: Government Route
Manufacturing of components and systems/sub-systems for satellites, ground segment and user segment	100%		Upto 100%: Automatic
Private Security Agencies	74%		Automatic up to 49% Government route beyond 49% and up to 74%
Telecom Services	100%		Automatic
Cash & Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs)	100%		Automatic
E-commerce activities	100%		Automatic
Single Brand product retail trading	100%		Automatic
Multi Brand Retail Trading	51%		Government
Duty Free Shops	100%		Automatic
Railway Infrastructure Construction, operation and maintenance of the following: Suburban corridor projects through PPP, High speed train projects, Dedicated freight lines, Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities, Railway Electrification, Signaling systems, Freight terminals, Passenger terminals, Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line and Mass Rapid Transport Systems	100%		Automatic
Asset Reconstruction companies	100%		Automatic
Banking- Private Sector	74%		Automatic up to 49% Government route beyond 49% and up to 74%
Banking- Public Sector subject to (Acquisition Banking & Transfer of Undertakings) Acts 1970/80. This ceiling (20%) is also applicable to the State Bank of India and its associate Banks.	20%		Government
Credit Information Companies	100%		Automatic
Infrastructure companies in Securities Markets	49%		Automatic
INSURANCE Insurance company	100%		Automatic
INSURANCE Intermediaries or Insurance including insurance brokers, re insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time	100%		Automatic
Pension Sector	49%		Automatic
Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010	49%		Automatic
White Label ATM Operations	100%		Automatic
Financial Services activities regulated by financial sector regulators viz, RBI, SEBI, IRDA, PFRDA, NHB or any other financial sector regulator as may be notified by the Government of India	100%		Automatic
Pharmaceuticals (Greenfield)	100%		Automatic
Pharmaceuticals (Brownfield)	100%		Automatic up to 74% Government route beyond 74%

How to Make an FDI Investment in India

Once you've confirmed your sector is eligible, the process broadly involves:

Step 1 — Confirm the sector and route: Verify using the table above and the current FDI Policy at DPIIT's website. For Approval Route — apply via National Single Window System (NSWS).

Step 2 — Choose the right vehicle: Private limited company (most common for FDI), LLP, or branch/liaison/project office — each has different FDI rules.

Step 3 — Bring in funds via banking channels: FDI must be remitted through proper banking channels and reported to the RBI.

Step 4 — Allot shares within 60 days: The investee company must issue shares within 60 days of receiving funds.

Step 5 — File intimation/obtain approval: For Automatic Route — file ARF/FCGPR with RBI.

Step 6 — Annual reporting: Ongoing compliance including annual returns to the RBI (FLA Return) is mandatory.

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