FDI Policy Architecture
Sectoral Caps, National Security, and Strategic Industries
India's FDI policy strikes a balance between attracting foreign capital and protecting strategic industries. The Consolidated FDI Policy (issued by DPIIT) specifies sector-by-sector caps and routes, with a residual category permitting 100% FDI under the automatic route. National security considerations override economic incentives in certain sectors, and land-border country restrictions add an additional country-of-origin filter.
- The Foreign Investment Facilitation Portal (FIFP) is the single-window system for FDI filings under the government route; competent authority is either DPIIT or the relevant line ministry (e.g., MeitY for electronics, Ministry of Mines for REEs).
- FDI is prohibited in: atomic energy, lottery/gambling, real estate business (not construction), chit funds, nidhi companies, tobacco manufacturing.
- The new 60-day timeline for land-border country proposals is enforced through an interministerial process — security clearance from the Ministry of Home Affairs and Ministry of External Affairs is required before DPIIT approval, creating potential for timeline slippage.
- The 10% automatic route threshold for non-controlling stakes addresses the concern of Chinese portfolio investment creating indirect influence — stakes above 10%, or any stake that confers control, still require government approval.
● Tracked since March 11, 2026 · last seen March 27, 2026 · updates as the daily brief publishes
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