Arete Consultants

Sector Wise Restrictions

The Government of India is focused on making India a Global hub for manufacturing activities. The following are some of the sectors where India has a lot of potential

S. No.SectorSectoral CapEntry Route
1Agriculture & Animal Husbandry100%Automatic
2Plantation Sector100%Automatic
3

Mining and Petroleum & Natural Gas

Mining and Exploration of metal and non-metal ores

Coal & Lignite

Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities

100%

100%

100%

Automatic

Automatic

Government

4

Petroleum & Natural Gas

Exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products.

Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs

100%

49%

Automatic

Government

5Defence100%Automatic upto 49%* Now Revised to 74%
6Broadcasting Carriage Services100%Automatic
7Broadcasting Content Services49%Government
8Print Media26%Government
9Civil Aviation100%Automatic
10Air Transport Services100%Automatic subject to Govt. approval in some specific field
11Construction Development: Townships, Housing, Built-up Infrastructure100%Automatic
12Private Security Agencies74%Automatic up to 49% Government route beyond 49% and up to 74%
13Telecom Services100%Automatic up to 49% Government route beyond 49%
14Trading Cash & Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs)100%Automatic
15E-commerce activities100%Automatic
16Single Brand product retail trading100%Automatic up to 49% Government route beyond 49%
17Multi Brand Retail Trading51%Government
18Duty Free Shops100%Automatic
19Railway Infrastructure Construction, operation and maintenance100%Automatic
20Asset Reconstruction Companies100%Automatic
21Banking- Private Sector74%Automatic up to 49% Government route beyond 49% and up to 74%.
221 Banking- Public Sector subject to Banking Companies (Acquisition & Transfer of Undertakings) Acts 1970/80. This ceiling (20%) is also applicable to the State Bank of India and its associate Banks20%Government
23Credit Information Companies100%Automatic
24Infrastructure companies in Securities Markets, namely, stock exchanges, commodity exchanges, depositories and clearing corporations, in compliance with SEBI Regulations49%Automatic
25(i) Insurance Company (ii) Insurance Brokers49%Automatic
26Pension Sector100%Automatic
27Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010.49%Automatic
28White Label ATM Operations100%Automatic
29Financial Services activities regulated by financial sector regulators, viz., RBI, SEBI, IRDA, PFRDA, NHB or any other financial sector regulator as may be notified by the Government of India100%Automatic
30

Pharmaceuticals

Greenfield

Brownfield

100%

100%

Automatic

Automatic up to 74% Government route beyond 74%