FDI Routes in India
Automatic vs. Government Route
India's FDI policy, governed by the Department for Promotion of Industry and Internal Trade (DPIIT), permits foreign investment through two routes. The Automatic Route requires no prior government approval — the investing entity only informs the Reserve Bank of India (RBI) within 30 days of inward remittance. The Government Route requires prior approval from the relevant ministry. Most sectors — including manufacturing, IT, retail (single-brand), and infrastructure — are under the Automatic Route, with 100% FDI permitted. Sensitive sectors like defence (beyond 74%), media, and atomic energy require Government Route approval.
- DPIIT issues the Consolidated FDI Policy, updated periodically
- Sectors with restricted FDI: multi-brand retail (51% cap), print media (26% cap), atomic energy (prohibited)
- Countries sharing land border with India (China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar): must use Government Route for all investments — a 2020 amendment targeting Chinese investment flows
- FDI is distinct from FPI (Foreign Portfolio Investment): FDI involves strategic, long-term stakes (typically 10%+ equity); FPI involves short-term, market-linked portfolio flows
- Cumulative FDI inflows (April 2000–December 2025): Singapore tops with USD 192.53 billion, Mauritius second with USD 185 billion
● Tracked since February 27, 2026 · last seen August 21, 2026 · updates as the daily brief publishes