IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 26 Aug 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 26 August 2014, the Department of Industrial Policy and Promotion increased the cap on FDI in the Defence Industry from 26% to 49%. Such investments will still require prior approval of the government. 
 
Furthermore prior to this decision, investments by Portfolio Investors were not permitted. These have been allowed with the new measure and are capped at 24% of the total equity. Also there was a three year lock in period for transfer of equity between non-resident investors, which has been omitted.

AFFECTED COUNTRIES

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