INDIA: Increase to India Foreign Direct Investment caps and amendments to entry routes in a number of sectors

Friday August 23 2013

The Government of India has published a Press Note, effective immediately, detailing a number of sectors in which India FDI caps have been increased and/or had changes to their entry routes. Details of the sectors are as follows:

• Petroleum and natural gas – no change to FDI cap (remains 49%), but now Automatic Route for entry.
• Defence – FDI cap remains in principle 26%, but Government approval can be sought to increase this in individual cases. Investment by FIIs through portfolio investment is not permitted.
• Courier services – cap remains 100%, but now Automatic route.
• Telecom services – FDI cap now 100%, with Automatic route up to 49%, thereafter Government approval required.
• Single-brand product retail trading – cap unchanged at 100%, but now up to 49% through Automatic route – Government approval required thereafter.
• Asset reconstruction companies – cap for FDI and FII investors increased from 74% to 100%. Up to 49% by Automatic route – Government approval thereafter.
• Commodity exchanges – cap unchanged at 49%, but now Automatic route.
• Credit information companies – cap increaed to 74% for FDI and FII, and now Automatic route.
• Infrastructure comapnies in securities markets – no change to cap (49%), but now Automatic route for entry.
• Power exchanges – no change to cap (49%) – but now Automatic entry route.

Click on the above link for the Press Note.