Government & Regulatory Affairs in India

Full guide · Source-checked research98% of statements checked against a source107 checked against an official source34 checked against a secondary sourceChecked 2026-10-19Not yet professionally reviewed

• Foreign investment under the automatic route does not need prior approval of the RBI or the central government, while investment under the government route needs prior government approval and must follow the conditions of that approval.

  Applies by sector under the Consolidated FDI Policy and the FEMA (Non-debt Instruments) Rules, 2019. Central rule.Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Investment Facilitation Portal · checked 2026-10-18

• Foreign direct investment is prohibited in lotteries, gambling and betting, chit funds, Nidhi companies, trading in transferable development rights, real estate business or construction of farmhouses, manufacture of cigars and cigarettes, and activities not open to private investment such as atomic energy and most railway operations.

  Para 5.1 of the Consolidated FDI Policy. Central rule.Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Investment Facilitation Portal · checked 2026-10-18

• An entity of a country sharing a land border with India, or an investment whose beneficial owner is linked to such a country, can invest only under the government route, and a later transfer that brings beneficial ownership within this category also needs government approval.

  Press Note 3 (2020 Series) dated 17 April 2020, as revised in 2026; subject to the 10% non-controlling exception in in-establish-004. Central rule.Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Investment Facilitation Portal · checked 2026-10-18

• Investors whose beneficial ownership from land-border countries is non-controlling and no more than 10% may invest under the automatic route, subject to sectoral caps, entry routes and conditions, with the investee reporting the relevant details to DPIIT.

  Beneficial ownership is defined using the criteria of the Prevention of Money-laundering Rules, 2005 and tested at the level of the investor entity. Central rule.Prime Minister's Office (pmindia.gov.in) · checked 2026-10-18

• Government-route FDI proposals are filed online on the Foreign Investment Facilitation Portal and assigned by DPIIT to the competent administrative ministry, with an indicative cumulative processing timeline of 12 weeks that excludes time taken by the applicant to supply information.

  Standard Operating Procedure dated 4 May 2026; DPIIT has two further weeks for proposals proposed for rejection or extra conditions. Central rule.Department for Promotion of Industry and Internal Trade (DPIIT) · checked 2026-10-18

• Proposals from land-border-country investors in specified manufacturing sectors must be decided within 60 days of filing where the investor holds up to 49% and resident Indian citizens or Indian-owned entities keep majority shareholding and control at all times.

  Sectors listed in Schedule II of the SOP, including capital goods, electronic components and electronic capital goods, polysilicon and ingot-wafer, advanced battery components and rare earth permanent magnets and processing. Central rule.Department for Promotion of Industry and Internal Trade (DPIIT) · checked 2026-10-18

• As of May 2026, rules under all four labour codes had been notified by Maharashtra, Gujarat, Karnataka, Madhya Pradesh and Delhi, while West Bengal had notified none and other states were part-way.

  State-level rules; position changes as states notify further rules.iPleaders · checked 2026-10-18

• Manufacturing is open to 100% foreign direct investment under the automatic route.

  Subject to the sector conditions and the land-border-country rule. Central rule.Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Investment Facilitation Portal · checked 2026-10-18

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