Lok Sabha Question No. 177 (UNSTARRED), answered on 2016-04-25
Subject: Investments by Foreign Countries
Ministry: COMMERCE AND INDUSTRY
Asked by: RAHUL KASWAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 177. TO BE ANSWERED ON MONDAY, THE 25 TH    APRIL, 2016.

## INVESTMENTS BY FOREIGN COUNTRIES

## 177.   SHRI RAHUL KASWAN:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग म त्री

- (a) whether many foreign countries like America, Japan, France, etc. have invested in India as a result of reformed economic policy during the last two years;
- (b) if  so,  the  details  thereof,  State-wise  along  with  the  facilities  provided  by  the Government to these countries for investment in India; and
- (c) the  steps  taken/being  taken  by  the  Government  to  encourage  the  countries  to increase the investment?

## ANSWER

## वाणिज् यवव द्यग ााज् यम त्रीस् वतं त्र्रभााा(स्ीमतंीिरममलााीीतंाामि(

## THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b): Yes, Madam. Due to the continuous reforms and initiatives being undertaken by the Government the FDI equity inflow has  recorded a growth of 44%  in its 21 months tenure (June 2014 to February 2016) from US$ 43.87 billion to US$ 63.16 billion over the preceding period of 21 months (September, 2012 to  May,  2014).  The  country  wise  details  of  investment  received  through Foreign Direct Investment (FDI) equity inflows during the last two years and the current financial year are given at Annexure-I. FDI data is not maintained state  wise,  but  RBI  regional  office  wise.  FDI  equity  inflows  recorded  for  a particular regional office of RBI, may cover more than one state. Accordingly,  region  wise  details  of  FDI  equity  inflow  are  at  Annexure  -II. Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India  and  by  advising  prospective  investors  about  investment  policies. However,  the  investment  decisions  of  investors  are  based  on  the  macroeconomic policy framework, investment climate in the host country, investment policies of the trans-national corporations and other commercial considerations.
- (c): To boost the entire investment environment and to bring in foreign investments  in  the  country,  the  Government  has  brought  in  FDI  related reforms and liberalization touching upon 15 major sectors of the economy by putting  more  and  more  FDI  proposals  on  automatic  route.  Details  of  the major initiatives taken in this regard are at Annexure III.

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## ANNEXURE - I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  &  (b)  OF  LOK  SABHA UNSTARRED QUESTIOIN NO. 177 FOR ANSWER ON 25 th  APRIL, 2016.

## FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2013 TO FEBRUARY 2016

|   Sl No | Country         | 2013-14 Apr-Mar FDI in US$ million   | 2014-15 Apr-Mar FDI in US$ million   | 2015-16 Apr-Mar FDI in US$ million   | Total FDI in US$ million   |
|---------|-----------------|--------------------------------------|--------------------------------------|--------------------------------------|----------------------------|
|       1 | Australia       | 58.10                                | 57.96                                | 153.17                               | 269.22                     |
|       2 | Austria         | 24.54                                | 35.64                                | 17.93                                | 78.10                      |
|       3 | Bahamas         | 2.76                                 | 4.84                                 | 0.61                                 | 8.21                       |
|       4 | Baharain        | 3.10                                 | 16.98                                | 15.25                                | 35.34                      |
|       5 | Argentina       | 0.02                                 | 0.00                                 | 0.00                                 | 0.02                       |
|       6 | Belgium         | 270.67                               | 42.03                                | 91.30                                | 404.01                     |
|       7 | Belarus         | 0.09                                 | 0.01                                 | 0.89                                 | 0.99                       |
|       8 | Brazil          | 1.57                                 | 0.63                                 | 1.15                                 | 3.35                       |
|       9 | Bangladesh      | 0.00                                 | 0.00                                 | 0.02                                 | 0.02                       |
|      10 | Bulgaria        | 0.06                                 | 0.99                                 | 0.05                                 | 1.10                       |
|      11 | Canada          | 11.32                                | 91.10                                | 103.03                               | 205.45                     |
|      12 | Caymen Islands  | 124.35                               | 72.16                                | 442.57                               | 639.08                     |
|      13 | Channel Islands | 7.88                                 | 11.31                                | 1.96                                 | 21.15                      |
|      14 | China           | 123.99                               | 494.75                               | 449.85                               | 1,068.60                   |
|      15 | Czech Republic  | 1.35                                 | 0.41                                 | 2.65                                 | 4.41                       |
|      16 | Cyprus          | 556.72                               | 597.97                               | 460.44                               | 1,615.13                   |
|      17 | Denmark         | 42.68                                | 29.25                                | 17.90                                | 89.83                      |
|      18 | Estonia         | 0.00                                 | 0.18                                 | 0.30                                 | 0.48                       |
|      19 | Finland         | 13.44                                | 59.23                                | 39.43                                | 112.09                     |
|      20 | Chile           | 2.90                                 | 6.26                                 | 0.00                                 | 9.17                       |
|      21 | France          | 305.39                               | 634.62                               | 591.18                               | 1,531.19                   |
|      22 | Greece          | 0.20                                 | 2.47                                 | 0.13                                 | 2.80                       |
|      23 | Germany         | 1,038.42                             | 1,124.86                             | 942.14                               | 3,105.42                   |
|      24 | HongKong        | 186.63                               | 325.52                               | 336.65                               | 848.80                     |
|      25 | Hungary         | 6.55                                 | 0.18                                 | 0.46                                 | 7.18                       |
|      26 | Indonesia       | 1.14                                 | 11.53                                | 1.31                                 | 13.98                      |
|      27 | Ireland         | 163.01                               | 12.77                                | 14.47                                | 190.24                     |
|      28 | Isle of Man     | 7.07                                 | 0.02                                 | 0.00                                 | 7.09                       |
|      29 | Israel          | 20.08                                | 10.22                                | 11.84                                | 42.14                      |
|      30 | Italy           | 196.05                               | 219.92                               | 277.44                               | 693.42                     |
|      31 | Liechtenstein   | 2.97                                 | 0.09                                 | 4.89                                 | 7.95                       |
|      32 | Japan           | 1,717.75                             | 2,084.23                             | 1,791.44                             | 5,593.42                   |
|      33 | Kazakhstan      | 8.70                                 | 0.00                                 | 0.00                                 | 8.70                       |
|      34 | Korea(North)    | 0.00                                 | 0.28                                 | 0.03                                 | 0.32                       |
|      35 | Lebanon         | 0.08                                 | 1.20                                 | 0.24                                 | 1.52                       |
|      36 | South Korea     | 173.85                               | 146.54                               | 241.94                               | 562.34                     |
|      37 | Kuwait          | 4.76                                 | 4.19                                 | 3.66                                 | 12.62                      |
|      38 | Latvia          | 0.00                                 | 0.04                                 | 0.00                                 | 0.04                       |
|      39 | Luxembourg      | 542.61                               | 229.50                               | 755.57                               | 1,527.68                   |
|      40 | Malaysia        | 88.28                                | 96.57                                | 72.97                                | 257.83                     |
|      41 | Mauritius       | 4,858.73                             | 9,030.15                             | 7,855.46                             | 21,744.34                  |

|   42 | Mexico                  | 9.39      | 5.72      | 19.32     | 34.43     |
|------|-------------------------|-----------|-----------|-----------|-----------|
|   43 | Maldives                | 0.34      | 0.00      | 0.01      | 0.34      |
|   44 | Nepal                   | 0.07      | 0.02      | 0.21      | 0.30      |
|   45 | Netherlands             | 2,270.47  | 3,435.55  | 2,461.93  | 8,167.95  |
|   46 | NewZealand              | 9.12      | 5.38      | 8.15      | 22.65     |
|   47 | Nigeria                 | 0.48      | 2.18      | 0.14      | 2.80      |
|   48 | Norway                  | 23.88     | 26.35     | 6.44      | 56.66     |
|   49 | Oman                    | 4.71      | 13.20     | 51.00     | 68.91     |
|   50 | Panama                  | 0.19      | 2.54      | 1.17      | 3.90      |
|   51 | Philippines             | 1.41      | 90.17     | 7.48      | 99.07     |
|   52 | Poland                  | 45.89     | 4.88      | 0.12      | 50.89     |
|   53 | Portugal                | 2.17      | 4.45      | 4.81      | 11.43     |
|   54 | Qatar                   | 1.80      | 0.50      | 0.80      | 3.09      |
|   55 | Romania                 | 1.66      | 0.75      | 0.55      | 2.96      |
|   56 | Russia                  | 15.57     | 570.34    | 46.07     | 631.98    |
|   57 | Saudi Arabia            | 1.06      | 11.38     | 6.38      | 18.82     |
|   58 | Singapore               | 5,985.10  | 6,742.28  | 13,463.68 | 26,191.06 |
|   59 | Scotland                | 0.93      | 8.91      | 0.00      | 9.84      |
|   60 | South Africa            | 102.64    | 66.28     | 25.30     | 194.22    |
|   61 | Slovakia                | 0.00      | 0.14      | 5.45      | 5.58      |
|   62 | Spain                   | 327.73    | 262.02    | 151.14    | 740.89    |
|   63 | Sri Lanka               | 0.92      | 4.55      | 5.17      | 10.65     |
|   64 | Sweden                  | 45.48     | 64.30     | 141.18    | 250.96    |
|   65 | Slovenia                | 0.00      | 0.25      | 0.23      | 0.49      |
|   66 | Switzerland             | 340.76    | 336.78    | 239.67    | 917.20    |
|   67 | Taiwan                  | 0.76      | 25.25     | 74.87     | 100.88    |
|   68 | Thailand                | 60.95     | 30.88     | 42.02     | 133.85    |
|   69 | Turkey                  | 27.52     | 10.22     | 38.87     | 76.61     |
|   70 | UAE                     | 254.96    | 367.32    | 958.25    | 1,580.53  |
|   71 | United Kingdom          | 3,215.13  | 1,446.62  | 873.16    | 5,534.92  |
|   72 | U.S.A                   | 806.35    | 1,823.60  | 3,968.59  | 6,598.54  |
|   73 | Ukraine                 | 0.00      | 2.51      | 1.08      | 3.59      |
|   74 | Venezuela               | 0.00      | 0.00      | 0.00      | 0.00      |
|   75 | Uruguay                 | 0.00      | 0.86      | 0.00      | 0.87      |
|   76 | British Virginia        | 9.11      | 32.79     | 187.29    | 229.18    |
|   77 | West Indies             | 0.00      | 0.00      | 0.12      | 0.12      |
|   78 | Country Details Awaited | 3.85      | 0.00      | 9.11      | 12.96     |
|   79 | Malta                   | 1.26      | 0.60      | 0.00      | 1.86      |
|   80 | Iran                    | 0.00      | 0.46      | 0.00      | 0.46      |
|   81 | Muscat                  | 0.00      | 0.01      | 0.00      | 0.01      |
|   82 | Tanzania                | 0.19      | 0.03      | 1.82      | 2.04      |
|   83 | Georgia                 | 0.00      | 0.00      | 0.09      | 0.09      |
|   84 | Gibraltar               | 0.22      | 0.06      | 0.00      | 0.27      |
|   85 | Jordan                  | 0.23      | 0.32      | 0.68      |           |
|   86 | Vietnam                 |           |           |           | 1.23      |
|   87 | Jamaica                 | 0.00 0.27 | 0.08 0.00 | 0.14 0.00 | 0.22 0.27 |
|   88 | Kenya                   | 0.00      | 0.67      | 0.29      | 0.96      |
|   89 | Egypt                   | 1.47      | 0.35      | 1.21      | 3.03      |
|   90 | Yemen                   | 0.00      | 0.00      | 0.01      | 0.01 0.42 |
|   91 | Monaco                  | 0.00      | 0.00      | 0.42      |           |
|   92 | Costa Rica              | 0.03      | 0.00      | 0.01      | 0.05      |

| 93   | St. Vincent        | 0.00      | 1.30      | 2.87      | 4.17      |
|------|--------------------|-----------|-----------|-----------|-----------|
| 94   | Myanmar            | 0.00      | 0.00      | 0.00      | 0.00      |
| 95   | Guersney           | 0.00      | 0.09      | 2.98      | 3.07      |
| 96   | Zambia             | 0.00      | 0.03      | 0.01      | 0.03      |
| 97   | Morocco            | 0.00      | 0.62      | 0.39      | 1.01      |
| 98   | Colombia           | 0.01      | 1.00      | 1.25      | 2.25      |
| 99   | British Isles      | 2.08      | 0.19      | 0.06      | 2.33      |
| 100  | Virgin Islands(US) | 25.13     | 4.76      | 0.00      | 29.89     |
| 101  | Peru               | 0.09      | 0.00      | 0.01      | 0.10      |
| 102  | Uganda             | 0.00      | 0.00      | 2.77      | 2.77      |
| 103  | Seychelles         | 122.41    | 40.62     | 2.59      | 165.62    |
| 104  | Ghana              | 1.74      | 1.48      | 0.00      | 3.22      |
| 105  | Togolese Republic  | 0.00      | 0.23      | 0.09      | 0.32      |
| 106  | Iraq               | 0.00      | 0.03      | 0.00      | 0.03      |
| 107  | Belize             | 0.02      | 0.02      | 0.13      | 0.17      |
| 108  | Cameroon           | 0.00      | 0.00      | 0.00      | 0.00      |
| 109  | Barbados           | 0.00      | 0.00      | 0.00      | 0.00      |
| 110  | Bermuda            | 2.09      | 14.13     | 3.45      | 19.67     |
| 111  | Botswana           | 0.00      | 0.00      | 1.82      | 1.82      |
| 112  | Anguilla           | 0.00      | 0.00      | 0.00      | 0.00      |
| 113  | St. Lucia          | 0.00      | 0.00      | 0.09      | 0.09      |
| 114  | Trinidad & Tobago  | 2.34      | 0.00      | 0.11      | 2.45      |
| 115  | SAN MARINO         | 1.52      | 0.00      | 0.00      | 1.52      |
| 116  | Paraguay           | 0.00      | 0.00      | 0.00      | 0.00      |
| 117  | SURINAME           | 0.00      | 0.09      | 0.00      | 0.09      |
| 118  | SENEGAL            | 0.00      | 0.00      | 0.00      | 0.00      |
| 119  | MOZAMBIQUE         | 0.00      | 0.00      | 0.00      | 0.00      |
| 120  | SAMOA ISLANDS      | 0.00      | 7.44      | 10.10     | 17.54     |
| 121  | TAJIKISTAN         | 0.00      | 0.29      | 0.45      | 0.74      |
| 122  | Lithuania          | 0.00      | 0.00      | 0.33      | 0.34      |
| 123  | Ivory Coast        | 0.00      | 0.00      | 0.00      | 0.00      |
| 124  | Algeria            | 0.00      | 0.00      | 0.00      | 0.00      |
| 125  | Swaziland          | 0.00      | 0.00      | 0.00      | 0.00      |
| 126  | Brunei Darussalam  | 0.00      | 0.00      | 0.09      | 0.09      |
| 127  | Fiji Island        | 0.00      | 0.00      | 0.04      | 0.04      |
| 128  | TURKMENISTAN       | 0.00      | 0.00      | 0.00      | 0.00      |
| 129  | MARSHALL ISLANDS   | 0.00      | 0.00      | 0.17      | 0.17      |
|      | Grand Total        | 24,299.33 | 30,930.50 | 37,534.55 | 92,764.38 |

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## ANNEXURE - II

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  &  (b)  OF  LOK  SABHA UNSTARRED QUESTIOIN NO. 177 FOR ANSWER ON 25 th  APRIL, 2016.

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2013 TO FEBRUARY 2016

(Amount in US$ million)

| Sl No   | Regional Offices of RBI   | States Covered                                                           | 2013-14   | 2014-15   | 2015-16 (upto Feb, 2016)   | Total     |
|---------|---------------------------|--------------------------------------------------------------------------|-----------|-----------|----------------------------|-----------|
| 1       | HYDERABAD                 | ANDHRA PRADESH                                                           | 678.25    | 1,368.72  | 1,543.04                   | 3,590.01  |
| 2       | GUWAHATI                  | ASSAM, ARUNACHAL PRADESH, MANIPUR, MEGHALAYA, MIZORAM, NAGALAND, TRIPURA | 0.61      | 4.66      | 9.28                       | 14.55     |
| 3       | PATNA                     | BIHAR, JHARKHAND                                                         | 1.38      | 11.13     | 42.71                      | 55.23     |
| 4       | AHMEDABAD                 | GUJARAT                                                                  | 859.90    | 1,531.15  | 2,114.34                   | 4,505.39  |
| 5       | JAMMU                     | JAMMU & KASHMIR                                                          | 0.23      | 4.06      | 0.41                       | 4.70      |
| 6       | BANGALORE                 | KARNATAKA                                                                | 1,891.78  | 3,443.89  | 4,072.87                   | 9,408.53  |
| 7       | KOCHI                     | KERALA, LAKSHADWEEP                                                      | 69.74     | 229.99    | 88.94                      | 388.67    |
| 8       | BHOPAL                    | MADHYA PRADESH, CHATTISGARH                                              | 118.85    | 100.13    | 57.11                      | 276.10    |
| 9       | MUMBAI                    | MAHARASHTRA, DADRA & NAGAR HAVELI, DAMAN & DIU                           | 3,420.28  | 6,361.09  | 8,366.19                   | 18,147.56 |
| 10      | BHUBANESHWAR              | ORISSA                                                                   | 47.65     | 9.17      | 5.33                       | 62.14     |
| 11      | JAIPUR                    | RAJASTHAN                                                                | 38.09     | 540.93    | 49.49                      | 628.51    |
| 12      | CHENNAI                   | TAMIL NADU, PONDICHERRY                                                  | 2,116.24  | 3,817.69  | 4,488.34                   | 10,422.27 |
| 13      | KANPUR                    | UTTAR PRADESH, UTTRANCHAL                                                | 24.78     | 110.36    | 66.50                      | 201.64    |
| 14      | KOLKATA                   | WEST BENGAL, SIKKIM, ANDAMAN & NICOBAR ISLANDS                           | 435.98    | 238.60    | 898.24                     | 1,572.82  |
| 15      | CHANDIGARH`               | CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH                            | 91.23     | 38.57     | 26.81                      | 156.62    |
| 16      | NEW DELHI                 | DELHI, PART OF UP AND HARYANA                                            | 6,241.89  | 6,874.95  | 12,383.84                  | 25,500.69 |
| 17      | PANAJI                    | GOA                                                                      | 17.15     | 34.50     | 18.20                      | 69.85     |
| 18      | Not Indicated 9000        | GOA                                                                      | 0.00      | 0.00      | 3.12                       | 3.12      |
| 19      | REGION NOT INDICATED      | REGION NOT INDICATED                                                     | 8,245.28  | 6,210.91  | 3,299.79                   | 17,755.97 |
|         |                           | Grand Total                                                              | 24,299.33 | 30,930.50 | 37,534.55                  | 92,764.38 |

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## ANNEXURE REFERRED TO IN REPLY TO PART (c)  OF LOK SABHA UNSTARRED QUESTIOIN NO. 177 FOR ANSWER ON 25 th  APRIL, 2016.

## FDI policy reforms/ initiatives in last two years

-  100%  FDI  under  the  automatic  route  has  been  allowed  in  the  specified rail infrastructure projects.
-  Investment made by NRIs, PIOs and OCIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations on non-repatriation basis is now deemed to be domestic investment at par with the investment made by residents.
-  The special dispensation of NRIs has also been extended to companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs.
-  100% FDI under automatic route  for  manufacturing  of medical  devices has  been permitted.
-  In  order  to  provide  simplicity  to  the  FDI  policy  and  bring  clarity  on  application  of conditionalities and approval requirements across various sectors, different kinds of foreign investments have been made fungible under one composite cap .
-  FDI  up  to  100%  through  automatic  route  has  been  allowed  in White  Label  ATM Operations .
-  Reforms in FDI Policy on Constructions Development sector include:
-  Removal of conditions of area restriction and minimum capitalization to be brought in within the period of six months of the commencement of business.
-  Exit and repatriation of foreign investment is now permitted after a lock-in-period of three years. Transfer of stake from one non-resident to another non-resident, without  repatriation  of  investment  is  also  neither  to  be  subjected  to  any  lock-in period nor to any government approval.
-  Exit is permitted at any time if project or trunk infrastructure is completed before the lock-in period.
-  100% FDI under automatic route is permitted in completed projects for operation and management of townships, malls/ shopping complexes and business centres.
-  Foreign  investment  up  to  49%  in defence  sector has  been  permitted  under automatic  route  along  with  specified  conditions.  Further  portfolio  investment  and investment by FVCIs has been allowed up to permitted automatic route level of 49%. The foreign investment in access of 49% has been allowed on case to case basis with Government approval in case of access to modern and 'state-of-art' technology related manufacturing.
-  Sectoral cap on Broadcasting sector has been raised across various activities as follows:
-  74% to 100% in Teleports, DTH, Cable Networks (Digital), Mobile TV, HITS
-  26% to 49% for FM Radio, up-linking of news and current affairs
-  49% to 100% for Cable Networks (not undertaking digitisation)
-  FDI  route  for  Up-linking  of  Non-  'news  and  current  affairs'  and  down-linking  of channels changed to automatic route.
-  Government has decided to introduce full fungibility of foreign investment in BankingPrivate sector . Accordingly, FIIs/FPIs/QFIs, following due procedure, can now invest up  to  sectoral  limit  of  74%,  provided  that  there  is  no  change  of  control  and management of the investee company.
-  Government  has  opened  certain plantation activities namely; coffee, rubber, cardamom, palm oil tree and olive oil  tree  plantations  for  100%  foreign  investment under automatic route.
-  It has been decided that a manufacturer will be permitted to sell its product through wholesale and/or retail, including through e-commerce under automatic route.
-  Government has reviewed single brand retail trading (SBRT) FDI policy to provide that sourcing of 30% of the value of goods purchased would be reckoned from the opening of first store. In case of 'state-of-art' and 'cutting-edge technology' sourcing norms can be relaxed subject to Government approval. Further, an entity operating SBRT through brick and mortar stores has been permitted to undertake e-commerce activities as well.
-  Indian brands are equally eligible for FDI to undertake SBRT. In this regard, it has been decided that certain conditions of the FDI policy on the sector namely; products to  be  sold  under  the  same  brand  internationally  and  investment  by  non-resident entity/ entities as the brand owner or under legally tenable agreement with the brand owner, will not be made applicable in case of FDI in Indian brands.
-  100% FDI is now permitted under automatic route in Duty Free Shops located and operated in the Customs bonded areas.
-  FDI policy on wholesale cash & carry activities has been reviewed to provide that a single entity will be permitted to undertake both the activities of SBRT and wholesale.
-  100%  FDI  is  now  permitted  under the automatic route in Limited  Liability Partnerships  (LLP) operating  in  sectors/activities  where  100%  FDI  is  allowed, through  the  automatic  route  and  there  are  no  FDI-linked  performance  conditions. Further,  the  terms  'ownership  and  'control'  with  reference  to  LLPs  have  also  been defined.
-  Regional Air Transport Service (RSOP) has been opened for foreign investment up to  49%  under  automatic  route.  Further,  foreign  equity  cap  of  activities  of  NonScheduled  Air  Transport  Service,  Ground  Handling  Services  have  been  increased from 74% to 100% under the automatic route.
-  Foreign investment cap on Satellites- establishment and operation has now been raised from 74% to 100% under the government route.
-  Foreign investment cap on Credit Information Companies has now been increased from 74% to 100% under the automatic route.
-  In order to achieve faster approvals on most of the proposals, the Government has decided to raise threshold limit for approval by FIPB to Rs. 5000 crore.
-  FDI Policy on Insurance and Pension sector reviewed to permit foreign investment up to 49% under automatic route.
-  In order to provide clarity to the e-commerce sector, the Government has guidelines for foreign investment in the sector. 100% FDI under automatic route is permitted in the marketplace model of e-commerce.
-  Further,  Finance  Minister  in  its  Budget  Speech  on  29.2.2016  has  announced  that 100% FDI will be allowed through FIPB route in marketing of food products produced and manufactured in India. This will benefit farmers, give impetus to food processing industry and create vast employment opportunities.

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