India’s Consolidated FDI Policy 2017 has been notified by the DIPP (GOI) w.e.f. 28/08/2017, which subsumes and supersedes all existing Press Notes/ Releases, Clarifications/ Circulars.
Subsequently, DIPP has reviewed/ amended the Consolidated FDI Policy 2017 in respect of various Sectors, like Civil Aviation, Construction Development, Single Brand Product Retail Trading, Power Exchanges, Pharmaceuticals, etc. It may be noted that these amendments will come into force/ effect, as may be notified under FEMA.
Updated 2017 version of FDI Policy incorporates and consolidates the law relating to FDI in India as on date (i.e. 26 Aug. 2017) at one place. This policy document has been issued by DIPP with an objective that foreign investors can understand Government’s policies in the matter of FDI in a simple manner, so that FDI in India can get a boost for overall betterment of Economy, GDP, etc.
It may be noted that India’s FDI Policy has first time included provisions relating to startups/ startup companies. These have been separately addressed in the FDI Policy 2017 as ‘eligible entities’ and relevant provisions have been spelled out for raising FDI from VCF, etc.
DIPP Press Note 1/ 2018 dt. 23/01/2018: Review of Consolidated FDI Policy 2017 (Various Sectors)
DIPP Circular dt 28/08/2017: Consolidated FDI Policy 2017 w.e.f. 28/08/2017
| Index of Contents: India’s Consolidated FDI Policy 2017 |
| Chapter 1: Intent and Objective |
| 1.1 Intent and Objective |
| Chapter 2: Definitions |
| 2.1 Definitions |
| Chapter 3: General Conditions on FDI |
| 3.1 Eligible investors |
| 3.2 Eligible investee entities |
| 3.3 Instruments of investments, issue/transfer of shares etc |
| 3.4 Entry Routes for Investment |
| 3.5 Caps on Investments |
| 3.6 Entry Conditions on Investment |
| 3.7 Other Conditions on Investment besides Entry Conditions |
| 3.8 Foreign Investment into/downstream Investment by eligible Indian entities |
| 3.9 Remittance, Reporting and Violation |
| Chapter 4: Procedure for Government Approval |
| 4.1 Competent Authority |
| 4.2 Cases which do not require Fresh Approval |
| 4.3 Online Filing of Applications for Government Approval |
| Chapter 5: Sector Specific Conditions on FDI |
| 5.1 Prohibited Sectors |
| 5.2 Permitted Sectors |
| Agriculture |
| 5.2.1 Agriculture & Animal Husbandry |
| 5.2.2 Plantation Sector |
| Mining and Petroleum & Natural Gas |
| 5.2.3 Mining |
| 5.2.4 Petroleum & Natural Gas |
| Manufacturing |
| 5.2.5 Manufacturing |
| 5.2.6 Defence |
| Services Sector |
| 5.2.7 Broadcasting |
| 5.2.8 Print Media |
| 5.2.9 Civil Aviation |
| 5.2.10 Construction Development: Townships, Housing, Built-up Infrastructure |
| 5.2.11 Industrial Parks |
| 5.2.12 Satellites- establishment and operation |
| 5.2.13 Private Security Agencies |
| 5.2.14 Telecom Services |
| 5.2.15 Trading |
| 5.2.16 Railway Infrastructure |
| Financial Services |
| 5.2.17 Asset Reconstruction Companies |
| 5.2.18 Banking- Private Sector |
| 5.2.19 Banking- Public Sector |
| 5.2.20 Credit Information Companies (CIC) |
| 5.2.21 Infrastructure Company in the Securities Market |
| 5.2.22 Insurance |
| 5.2.23 Pension Sector |
| 5.2.24 Power Exchanges |
| 5.2.25 White Label ATM Operations |
| 5.2.26 Other Financial Services |
| Others |
| 5.2.27 Pharmaceuticals |
| Annexures |
| Annexure-1 Form FC-GPR |
| Annexure-2 Types of Instruments |
| Annexure-3 Provisions Relating to Issue/Transfer of Shares |
| Annexure-4 Specific Conditions in Certain Cases |
| Annexure-5.Total Foreign Investment i.e. Direct and Indirect Foreign Investment in eligible Indian entities |
| Annexure-6..Remittance, Reporting and Violation |
| Annexure-7 Conditions for Broadcasting Sector |
| Annexure-8 Conditions for Industrial Parks |
| Annexure-9 Permissible limits under portfolio investment schemes through stock exchanges for FIIs/FPIs and NRIs |
| Annexure – 10 Certificate to be furnished by the Prospective Investor as well as the Prospective Recipient Entity |
In para 5.2.10.1 under sector construction and Development projects, the following changes suggested :
1.Each phase of construction and Development project should not be considered as separate project, INSTEAD construction and Development of all ONGOING PROJECTS of ONE Company should be considered as one project so that A Company need not file RETURN to RBI/GOVT each time for each project; this will save harassment and time of the Construction and Development company AND reduce Official formalities and as a result Foreign Investor in Construction an Development Sector will be more encouraged and FDI will certainly be INCREASED.
2.Procedure to file Return/Submission of Intimation Form to RBI/Govt should be more simplified so that Foreign Investors feel more inclined to invest in Indian Construction and Development Company.
3.Repatriation Procedure should be made more easy and simple and AD BAnks should be directed to extend all co-operation and Assistance to the Investors as well as to the Investee company in India, which are not always available from most of the AD BANKS.