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Trading
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Trading
is permitted under automatic route with FDI upto
51% provided it is primarily export activities,
and the undertaking is an export house / trading
house / super trading house / star trading house.
However, under the FIPB route:-
- 100%
FDI is permitted in case of trading companies
for the following activities:
- exports;
- bulk
imports with export / expanded warehouse
sales;
- cash
and carry wholesale trading;
- other
import of goods or services provided at
least 75% is for procurement and sale of
goods and service among the companies of
the same group and for third party use or
onward transfer / distribution / sales
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The following kinds of trading are also permitted,
subject to provisions of EXIM Policy:
- Companies
for providing after sales services (that
is not trading per se).
- Domestic
trading of products of JVs is permitted
at the wholesale level for such trading
companies who wish to market manufactured
products on behalf of their joint ventures
in which they have equity participation
in India.
- Trading
of hi-tech items/items requiring specialised
after sales service .
- Trading
of items for social sector.
- Trading
of hi-tech, medical and diagnostic items.
- Trading
of items sourced from the small scale sector
under which, based on technology provided
and laid down quality specifications, a
company can market that item under its brand
name.
- Domestic
sourcing of products for exports.
- Test
marketing of such items for which a company
has approval for manufacture provided such
test marketing facility will be for a period
of two years, and investment in setting
up manufacturing facilities commences simultaneously
with test marketing
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Investing
companies in Infrastructure/ service sector
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In
respect of the companies in the Infrastructure
/ services sector, where there is a prescribed
cap for foreign investment, only the direct investment
will be considered for the prescribed cap and
foreign investment in an investing company will
not be set off against this cap provided the foreign
direct investment in such investing company does
not exceed 49% and the management of the investing
company is with the Indian owners. The automatic
route is not available.
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Atomic
energy
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The
following three activities are permitted to receive
FDI / NRI / OCB investments through FIPB (as per
detailed guidelines issued by Department of Atomic
Energy vide Resolution No.8/1(1)/97-PSU/1422 dated
6.10.98):
- Mining
and mineral separation.
- Value
addition per se to the products of (a) above.
- Integrated
activities (comprising of both (a) and (b) above.
The
following FDI participation is permitted:
- Up
to 74% in both pure value addition and integrated
projects.
- For
pure value addition projects as well as integrated
projects with value addition upto any intermediate
stage, FDI is permitted upto 74% through joint
venture companies with Central / State PSUs
in which equity holding of at least one PSU
is not less than 26%.
- In
exceptional cases, FDI beyond 74% will be permitted
subject to clearance of the Automatic Energy
Commission before FIPB approval.
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Defence
and strategic industries
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*The
defence industry sector is opened up to 100% for
Indian private sector participation with FDI permissible
up to 26%, both subject to licensing.
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Agriculture
(including plantation)
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No
FDI / NRI / OCB investment is permitted.
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Print
media
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No
FDI / NRI / OCB investment is permitted.
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Broadcasting
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No
FDI / NRI / OCB investment is permitted.
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Power
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Up
to 100% FDI allowed
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Drugs
& Pharmaceuticals
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*FDI
up to 100% is permitted on the automatic route
for manufacture of drugs and pharmaceuticals,
provided the activity does not attract compulsory
licensing or involve use of recombinant DNA technology,
and specific cell/tissue targeted formulations.
FDI proposals for the manufacture of licensable
drugs and pharmaceuticals and bulk drugs produced
by recombinant DNA technology, and specific cell/tissue
targeted formulations will require prior Government
approval.
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Roads
& Highways, Ports and Harbours
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FDI
upto 100% under automatic route is permitted in
projects for construction and maintenance of roads,
highways, vehicular bridges, toll roads, vehicular
tunnels, ports and harbours.
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