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: 03 Dec 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 3 December 2014, India liberalized the policy for FDI in the Construction sector. The new policy amendments have lowered the threshold for capital investments and rationalized it at USD 5 million, reduced the minimum built-up area from 50,000 sq. mts. to 20,000 sq. mts and reduced the minimum land area requirement completely for development of serviced housing plots.
 
Earlier, investors were not allowed to repatriate investments until 3 years from completion of minimum capitalization. This has been changed to allow exit on completion of project or development of trunk infrastructure (i.e. roads, water supply, drainage, street lighting and sewage).
 
Finally, the requirement to have completed 50% of the development within 5 years from the reception of statutory clearances for these projects has been removed.

AFFECTED COUNTRIES

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