Consolidated FDI Policy, 2017 of India (w.e.f. 28 Aug. 2017) Review by DIPP

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
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

One Response

  1. Dipak Kumar Bhattacharya

Leave a Reply