FDI Routes
Automatic vs. Government Approval
India's FDI policy operates on two principal entry routes. Under the automatic route, foreign investors do not require prior government or RBI approval — they simply notify the RBI post-investment. Under the government approval route, the proposal must be cleared by the relevant administrative ministry (coordinated by DPIIT) before investment is made. The government route applies to sectors considered sensitive — defence, multi-brand retail, broadcasting, and now LBC investments (barring the new 10% threshold).
- DPIIT (Department for Promotion of Industry and Internal Trade): Nodal body for FDI policy; issues Press Notes and processes approvals
- RBI: Receives post-factum filings under the automatic route; issues FEMA regulations
- FEMA (Foreign Exchange Management Act, 1999): Primary legislation governing foreign exchange transactions and FDI inflows
- Cabinet Committee on Economic Affairs (CCEA): Reviews FDI proposals exceeding ₹5,000 crore in foreign equity inflow
● Tracked since May 05, 2026 · last seen August 21, 2026 · updates as the daily brief publishes
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