Stating a Business Easier Now!

Now You Can Register Your Company with ZERO Fee

Call at +91-88001-00284

Request for Call Back

FDI Prohibited Sectors in India

The number of economic sectors open to FDI in India is rather large and covers most of the big, highly significant, and booming sectors. FDI in these permitted economic sectors of India are to be made through the automatic or governmental routes. The number of sectors to which FDI up to 74 or 100% can be made through the automatic route is also big, to please foreign investors worldwide. To know detailed information about FDI in these permitted sectors of India, please visit other web-pages of this internationally commended law firm of India located in Delhi. This webpage deals exclusively with the fdi sectors in india with restrictions, to help our numerous global investor visitors.

At present the Indian economic sectors where foreign direct investment is prohibited, are the following:
  • Lottery Business, including the Government and Private lottery, online lotteries, etc.
  • Gambling and Betting activities, such as Casinos, etc.
    [Note: --- any type of foreign technology collaboration in the lottery business and gambling and betting activities, is also prohibited].
  • Chit Funds
  • Nidhi Company (borrowing from members and leading to members only)
  • Trading in Transferable Development Rights (TDRs)
  • Real Estate Business (other than Construction Development) and Construction of Farm Houses
  • Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
  • Services like Legal, Book Keeping, Accounting & Auditing.
  • And, Activities/Sectors not open to the Private Sector Investment e.g. (I) Atomic Energy and (II) Railway Operations (other than the permitted activities mentioned in Para 6.2 of the DIPP's Consolidated FDI Policy Circular 2015.

The permitted activities of the sector of railways in India for FDI, are broadly concerned with the railway infrastructure development, construction, operation, and maintenance; and are the following: --- (i) Suburban corridor projects through PPP, (ii) High speed train projects, (iii) Dedicated freight lines, (iv) Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities, (v) Railway Electrification, (vi) Signaling systems, (vii) Freight terminals, (viii) Passenger terminals, (ix) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line and (x) Mass Rapid Transport Systems. Into these activities, 100% FDI is permitted through the automatic route. However, investments should be made in compliance with the sectoral guidelines of the Ministry of Railways, or the Cabinet Committee on Security (CCS), especially for FDI beyond 49% in certain sensitive areas.

Erudite, well-experienced, and internationally renowned lawyers of our full-fledged law firm of India are well-versed in offering the complete gamut of legal services for making FDI in any sector of India. To avail our expeditious and excellent services in connection with FDI in India, please contact at; +91-8130-3000-46; or email your problems or queries to: contact@company-registration.in .