Understanding FDI In India Government Route And Sectoral Caps

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Entry Route

What is Government Route?

Government Route is an entry route for investment by a person resident outside India. For investment under this route, the person requires prior Government approval. Investment must comply with conditions stipulated in the approval.

Sectoral Caps Under Government Route (subject to conditions)

Defence

Under the Defence sector, Foreign Direct Investment (FDI) up to 74% is permitted under Automatic Route for companies seeking new industrial license.
FDI beyond 74% is permitted under Government Route if the investment is likely to result in access to modern technology or for other reasons.
Foreign investment up to 49% is permitted in companies without an industrial license, exceeding this requires Government approval.

Print Media

Covers printing of Scientific and Technical Magazines/specialty journals/periodicals subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by the Ministry of Information and Broadcasting.
Includes publication of facsimile (replica) editions of foreign newspapers.

Broadcasting Content Services

It covers Terrestrial Broadcasting FM (FM Radio) and Up-Linking (signal transmission) of ‘News & Current Affairs’ TV Channels

Multi Brand Retail Trading (MBRT)

It includes the sale of products from multiple brands under an entity.
The minimum amount to be brought in as foreign investment would be USD 100 million.

Pharmaceuticals

For brownfield pharma projects

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