Consolidated FDI Policy, 2017 of India (effective from 28 Aug. 2017) notified by DIPP

Consolidated FDI Policy 2017 of India (w.e.f. 28 Aug. 2017) notified by Dipp (Govt. of India)

A. India’s Consolidated FDI Policy, 2017: DIPP Circular dt. 28 Aug. 2017

India’s Consolidated FDI Policy 2017 has been notified by the DIPP (GOI) applicable w.e.f. 28 Aug. 2017, which subsumes and supersedes all Press Notes/ Press Releases/ Clarifications/ Circulars issued by it so far and in force as on 27 Aug. 2017. New FDI Policy 2017 of India will remain in force until superseded in totality or in part thereof. Reference to any statute or legislation made in this Circular shall include modifications, amendments or re-enactments thereof.

Notwithstanding the rescission of earlier Press Notes/ Press Releases/ Clarifications/ Circulars, anything done or any action taken or purported to have been done or taken under the rescinded Press Notes/ Press Releases/ Clarifications/ Circulars prior to August 28, 2017, shall, in so far as it is not inconsistent with those Press Notes/ Press Releases/ Clarifications/ Circulars, be deemed to have been done or taken under the corresponding provisions of this circular and shall be valid and effective.

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.

Download pdf copy of FDI Policy 2017 from the link below:

Consolidated FDI Policy 2017 w.e.f. 28 Aug. 2017: DIPP Circular dt 28 Aug. 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
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
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
5.2.27 Pharmaceuticals
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

B. DIPP invites comments/ suggestions from stakeholders on proposed FDI policy for 2017

Consolidated FDI Policy Circular of 2016 is under review for formation of Policy for 2017, which would incorporate all the changes effected in FDI Policy so far. Therefore, the DIPP has invited comments/ suggestions from stakeholders latest by 27 Jan. 2017, via email at

DIPP Press Release dt. 16 Jan. 2017

C. Consolidated FDI Policy, 2016 of India: DIPP Circulars

Consolidated FDI Policy Circular is a policy framework on Foreign Direct Investment which are in force. The first Circular was issued in March, 2010, which has been updated periodically. ‘Consolidated FDI Policy Circular of 2016’ is the ninth edition of the series and it subsumes and supersedes all Press Notes / Press Releases / Clarifications / Circulars, which were in force as on June 06, 2016 and reflects the Consolidated Statement of DIPP on FDI Policy of India as on June 07, 2016.

Consolidated FDI Policy Circular of 2016 incorporates all FDI policy amendments carried out since the release of last FDI Circular i.e. since May 12, 2015. FDI Policy Circular, 2016 has been made simpler and investor friendly; and will serve as a ready reference for foreign investors on various provisions of the FDI policy of India. This DIPP Circular on Consolidated FDI Policy 2016 accordingly will remain in force until superseded in totality or in part thereof.

However, Govt. has made certain amendments in Consolidated FDI policy 2016 subsequently. The trail of major amendments is as under:

Changes in Consolidated FDI Policy 2016 DIPP Press Note No. 1 dt. 20 Feb. 2017

Changes in Consolidated FDI Policy 2016 DIPP Press Note No. 5 dt. 24 Jun. 2016

Consolidated FDI Policy 2016 Circular dt 7 Jun. 2016

Changes in Consolidated FDI Policy 2015 DIPP Press Note 24 Nov. 2015

Consolidated FDI Policy 2015 Circular dt 12 May 2015

One Response

  1. Dipak Kumar Bhattacharya Jul 4, 2017

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