FDI in India: Sector-wise Investment Limits (Complete 2026 Guide)
Most sectors in India permit 100% FDI under the automatic route — no prior government approval needed, only post-investment RBI reporting. A handful of sensitive sectors cap foreign ownership or require government approval first. Investing without checking your sector's limit is the single most common FDI mistake foreign investors make.
FDI limits by sector (illustrative)
| Sector | FDI limit | Route |
|---|---|---|
| IT/Software, e-commerce (B2B/marketplace) | 100% | Automatic |
| Manufacturing | 100% | Automatic |
| Single-brand retail | 100% | Automatic (conditions above 49%) |
| Insurance | 74% | Automatic |
| Defence manufacturing | 74% automatic, beyond via approval | Mixed |
| Multi-brand retail | 51% | Government approval |
| Print media (news/current affairs) | 26% | Government approval |
Limits are periodically revised by the DPIIT — always confirm your sector's current limit before committing capital.
Automatic vs Government route
Under the automatic route, you invest first and report afterward — file FC-GPR within 30 days of share allotment. Under the government route, you need prior approval from the relevant ministry before investing, which can take several weeks to months.
Why checking the limit first matters
Structuring a cap table or remitting funds before confirming your sector's limit can force a costly restructuring later, or attract FEMA penalties of up to 3x the contravening amount.
Not sure which route applies to you? Our FDI/FEMA compliance service confirms your sector's limit and manages RBI reporting.