Foreign Direct Investment Policy 2016 announced


In line with the announcements during Union Budget 2016-17, DIPP has released consolidated Foreign Direct Investment (FDI) Policy of India 2016, which  subsumes and supersedes all previous Circulars/ Notifications/ Public Notices, which were in force as on 6th June, 2016.

This document reflects the Consolidated Statement on FDI Policy of India applicable from June 07, 2016 onwards. The Government has put in place a policy framework on Foreign Direct Investment, which is transparent, predictable and easily comprehensible. This framework is embodied in the Circular on Consolidated FDI Policy, which may be updated every year, to capture and keep pace with the regulatory changes, effected in the interregnum.

Table 1: FDI status in some of the prominent sectors

Sector/Activity % of Equity/FDI Cap Entry Route 
Defence Industry: subject to Industrial license under the Industries (Development & Regulation) Act, 1951 49%                
  • Automatic up to 49%  
  • Above 49% under Government route on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country.
  1. Teleports (setting up of up-linking HUBs/Teleports);
  2. Direct to Home (DTH);
  3. Cable Networks
  4. Mobile TV
  5. Headend-in-the Sky Broadcasting service(HITS)
  • Automatic up to 49%
  • Government route beyond 49%
Industrial Parks -new and existing 100%
  • Automatic
Telecom Services (including Telecom Infrastructure Providers Category-I) 100%
  • Automatic up to 49%
  • Government route beyond 49%
E-commerce activities 100%
  •   Automatic

  ( Source: ELCINA)


By Sudeshna Das