Government has put in place a liberal and investor-friendly policy on Foreign Direct Investment (FDI) under which FDI up to 100% is permitted on the automatic route in most sectors / activities. The UNCTAD's World Investment Reports for 2007 and 2008 have rated India as the second most attractive investment destination.
The policy on FDI is reviewed on a continuing basis through inter-ministerial consultations. A statement giving the extant FDI policy on sensitive sectors viz., Defence, Aviation, Print Media and Telecom is as below:
1. Defence Production:
FDI up to 26%, under the FIPB route, is allowed for Defence Production subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition.
2. FDI Policy for Air Transport Services Sector:
Government has allowed the following:
No foreign airlines would be allowed to participate directly or indirectly in the equity of an Air Service Undertaking;
FDI up to 49% and investment by Non-resident Indians (NRI) up to 100% will be allowed on the automatic route in Domestic Scheduled Passenger Airline Sector;
FDI up to 74% and investment by Non-resident Indians (NRI) up to 100% will be allowed on the automatic route in Non Scheduled airlines, Chartered airlines, and Cargo airlines;
FDI up to 74% and investment by NRI up to 100% will be allowed on the automatic route in Ground Handling Services; and
FDI up to 100% will be allowed on the automatic route in Maintenance and Repair organizations; flying training institutes; technical training institutions; and helicopter services/seaplane services.
3. Telecommunications
|
|
Sector |
Equity Cap |
Entry route |
Other Conditions |
|
a) |
Basic and cellular, Unified Access Services, National/ International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal
Communications Services (GMPCS) and other value added telecom services |
74% (Including
FDI, FII, NRI,
FCCBs, ADRs,
GDRs, convertible
Preference
shares, and
proportion-
nate foreign
equity in Indian
promoters/ Investing Company) |
Automatic up to 49%.
FIPB
beyond
49%. |
Subject to guidelines notified in the PN 3(2007) |
|
b) |
ISP with gateways, radio-paging, end-to-end bandwidth. |
74% |
Automatic up to 49%.
FIPB
beyond
49%. |
Subject to licensing and security requirements notified by the Dept. of Telecommunications. |
|
c) |
(a) ISP without gateway,
(b) infrastructure
provider providing dark fibre, right of way, duct space, tower (Category I);
(c) electronic mail and voice mail.
|
100% |
Automatic up to 49%.
FIPB
beyond
49%. |
Subject to the condition that such companies shall divest 26% of their equity in favour of Indian public in 5 years, if these companies are listed in other parts of the world. Also subject to licensing and security requirements, where required. |
|
d) |
Manufacture of telecom equipments |
100% |
Automatic |
Subject to sectoral requirements.
|
4. Print Media
|
a. |
Publishing of newspaper and periodicals dealing with news and current affairs |
26% |
FIPB |
Subject to Guidelines notified by Ministry of Information & Broadcasting.
www.mib.nic.in |
|
b. |
Publishing of scientific magazines/specialty journals/periodicals |
100% |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting.
www.mib.nic.in |
|
c. |
Publishing of facsimile edition of foreign newspapers. |
100% |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting.
Press Note 1 of 2009. |
|
d. |
Publication of Indian editions of foreign magazines dealing with news & current affairs. |
26%
(FDI & Investment by NRIs/PIOs/FII) |
FIPB |
Subject to guidelines issued by Ministry of Information & Broadcasting.
Press Note 1 of 2009. |
This information was given by Shri Ashwani Kumar, Minister of State for Industry, in a written reply in the Lok Sabha today.
