India's FDI Policy Framework
Automatic vs Government Route
India's FDI policy, administered by DPIIT under the Ministry of Commerce and Industry and operationalised through the Foreign Exchange Management Act (FEMA), 1999, permits foreign investment either via the Automatic Route (no prior government approval needed) or the Government Route (requires approval from the concerned administrative ministry/department). Sector-specific caps and conditions are notified through the Consolidated FDI Policy Circular, updated periodically by DPIIT.
- Sectors such as defence (beyond 74% automatic route), print media, and multi-brand retail typically require Government Route approval
- Large-value proposals even within otherwise automatic-route sectors can be escalated to CCEA when they cross the value threshold, given their macroeconomic significance
- FEMA, 1999 replaced the earlier Foreign Exchange Regulation Act (FERA), 1973, marking India's shift from a foreign-exchange-control regime to a foreign-exchange-management regime post-1991 liberalisation
● Tracked since March 10, 2026 · last seen August 09, 2026 · updates as the daily brief publishes
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