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· GKTodayFDI

FDI automatic route, government route and prohibited sectors

Summary

The automatic route needs no prior approval; the government route is approved through the Foreign Investment Facilitation Portal (FIFP). Lottery and gambling, chit funds, tobacco manufacturing and real estate (excluding commercial infrastructure) are among the prohibited sectors.

Key points
  • Insurance 100% (automatic); defence 74% (automatic, government route above that)
  • Sector caps such as 100% for satellite components and 49% for launch vehicles
  • Government approval if a land-border investor holds control or more than 10% non-controlling
For Korean companiesWrite your business model in one line and note which sector classification it falls under. If it is ambiguous, you need legal review.
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· India BriefingFDIOfficial

What changes when land-border-country capital is involved?

Until now, investment involving China or other bordering countries needed approval across the board. Since the March 2026 amendment, up to 10% non-controlling beneficial ownership goes through the automatic route, and designated manufacturing sectors get a 60-day review.

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· TaxGuruFDI

Retail and e-commerce FDI, as summarised in 2019

Single-brand retail was 100% automatic, multi-brand 51% with government approval, and e-commerce allowed only the marketplace model, not inventory. Where foreign ownership in single-brand exceeded 51%, 30% of sourcing had to be from India.

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FDI automatic route, government route and prohibited sectors · Adullam Market Research