Features of FDI(foreign direct
investment) are as follows:
- FDI up to 100 per cent is allowed under the automatic route in all activities/sectors except the following, which will require approval of the Government:
Activities/items that require an Industrial Licence;
Proposals in which the foreign collaborator has a
previous/existing venture/tie up in India in the same or allied
field.
All proposals relating to acquisition of shares in an
existing Indian company by a foreign/NRI investor.
All proposals falling outside notified sectoral
policy/caps or under sectors in which FDI is not permitted.
- FDI in areas of special economic activity:
- Special Economic Zones:
100 per cent FDI is permitted under automatic route for
setting up of Special Economic Zone. Units in SEZ qualify for
approval through automatic route subject to sectoral norms. Details
about the type of activities permitted are available in the Foreign
Trade Policy issued by the Department of Commerce. Proposals not
covered under the automatic route require approval by FIPB.
- Export Oriented Units (EOUs):
- 100 per cent FDI is permitted under automatic route for setting up 100 per cent EOU, subject to sectoral norms. Proposals, which are not covered under the automatic route would be considered and approved by FIPB.
- Industrial Park:
100 per cent FDI is permitted under automatic route for
setting up of the Industrial Park. Electronic Hardware Technology
Park (EHTP) Units All proposals for FDI/NRI investment in EHTP Units
are eligible for approval under the automatic route subject to the
parameters listed. For proposals not covered under automatic route,
the applicant should seek separate approval of the FIPB, as per the
procedure outlined in the policy.
- Software Technology Park Units:
All proposals for FDI/NRI investment in STP Units are
eligible for approval under automatic route subject to parameters
listed. For proposals not covered under automatic route, the
applicant should seek separate approval of the FIPB, as per the
procedure outlined in the policy.
