Snapshot of changes in India’s foreign equity norms

India on Monday further liberalised its foreign direct investment norms. A snapshot of existing and new provisions:

* Aviation

Earlier: FDI under automatic route for 100 per cent in greenfield and 74 per cent in brownfield airport projects.

Now: FDI of 100 per cent in brownfield airport projects also allowed under automatic route.

*Defence

Earlier: FDI of 49 per cent under automatic route and above this through government approval on case-by-case basis when it is likely to result in access to modern and “state-of-the-art” technology.

Now: FDI beyond 49 per cent permitted through government approval route. The condition of access to “state-of-the-art” technology in the country has been done away with. Policy also applicable to small arms and ammunitions.

*Single Brand Retail Trading

Earlier: FDI of up to 100 per cent allowed with local sourcing condition of 30 per cent.

Now: Local sourcing norms relaxed up to three years, and general sourcing regime for another five years, for entities trading in products with “state-of-art” and “cutting edge” technologies.

*Food Processing

Earlier: FDI of 100 percent under automatic route only for manufacturing and processing.

Now: FDI of 100 per cent under government approval route for trading of food products manufactured or produced in India, including through e-commerce.

*Pharmaceuticals

Earlier: 100 per cent FDI under automatic route in greenfield pharma projects and up to 100 per cent under government approval in brownfield projects.

Now: Brownfield projects, too, under automatic route for up to 74 per cent.

*Private security

Earlier: 49 per cent FDI under government approval route.

Now: FDI up to 49 per cent under automatic route, and FDI beyond 49 per cent and up to 74 per cent via government approval route.

*Animal husbandry

Earlier: FDI of 100 per cent under automatic route under “controlled” conditions.

Now: The “controlled condition” norms done away with.

*Broadcasting Carriage Services

Earlier: FDI for direct-to-home, mobile TV, head-end in the sky and cable networks of up to 49 per cent under automatic route and up to 74 per cent under government route.

Now: 100 percent FDI under automatic route. (IANS)