India flag India: Investing in India

Investment framework and opportunities in India

Procedures Relative to Foreign Investment

Freedom of Establishment
Guaranteed, with some exceptions.
Acquisition of Holdings
Foreign ownership of Indian companies is governed by the Foreign Exchange Management (Non-debt Instruments) Rules 2019 (Foreign Investment Regulations). The government has gradually liberalised the foreign investment provisions. The current Foreign Investment Regulations allow 100% foreign investment in most sectors open to private investment in India (Automatic route). However, there are certain areas that require prior government approval before a foreign investment can be made, or where less than 100% foreign ownership is permitted (Government route).
Obligation to Declare
Mergers and acquisitions are generally governed by the Companies Act, 1956 and the sector-specific law.
Competent Organisation For the Declaration
Department of Industrial Policy and Promotion
Requests For Specific Authorisations
Some foreign investments may require prior government approval (government route) such as FDI in defense sector (subject to security clearance and guidelines of the Ministry of Defence), print media sector, security agencies, telecom services sector (subject to the licensing and security conditions as specified from time to time by the Department of Telecom, Ministry of Communications), multi-brand retail trading sector, brownfield pharmaceuticals sector.

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Latest Update: June 2022

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