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FDI Allowed
selectively
up to 40%
Investing in India
• Industrial sector-
• Manufacturing- permitted up to 100% on the automatic route in all
manufacturing activities except for cigarettes ; defence related
items; and items reserved for SSI sector.
• Mining Sector -100% is permitted on the automatic route
exploration and mining of diamonds, precious stones, gold, silver
and minerals. 100% in coal and lignite mining for captive
consumption by power projects, and iron and steel, cement
production and other activities permitted under the Coal Mines
(Nationalisation) Act, 1973.
• Electricity Sector- 100% is permitted on the automatic route in
generation, transmission, distribution of electricity and also power
trading subject to the provisions of the Electricity Act, 2003.
FDI Policy - Salient features (contd.)
15.7
16
14
12
10
8
5.55
4.22
6 3.68 3.13
3.08 2.9 2.63 3.2
2.77 2.43
4
0
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
New concept - Investment Regions