FDI

  • February 26, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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FDI

TOPIC: Economy

Context- The Union Cabinet is expected to consider a proposal to put Life Insurance Corporation (LIC) at par with public sector banks for foreign direct investment (FDI).

Concept-

FDI Limits In Different Sectors In India:

SectorFDI Limit & Route
1.     Agriculture & Animal Husbandry100% Automatic
2.     Mining (Coal & Lignite)100% Automatic
3.     Petroleum & Natural Gas Exploration100% Automatic
4.     Petroleum & Natural Gas refining by the Public Sector Undertakings (PSU)49% Automatic
5.     Defence ManufacturingAutomatic up to 74%

Above74% under Government route in cases resulting in access to modern technology in the country

6.     Print Media26% Government Route
7.Civil Aviation – Airports

Green Field Projects & Existing Projects

100% Automatic
8.Civil Aviation – Air Transport Services

• Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline

• Regional Air Transport Service

(Foreign Airlines are barred from Investing in Air India)

Automatic up to 49%

Above 49% under Government route

100% Automatic for NRIs

9. Telecom Services100%, Above 49% under Government route
10. Private Security AgenciesAutomatic up to 49%

Above 49% & up to 74% under Government route

11. Single Brand Retail100%, Automatic up to 49%

Above 49% under Government route

12. Multi Brand Retail51% Under Government Route.
13. Banking- Private SectorAutomatic up to 49%

Above 49% & up to 74% under Government route

14. Banking- Public Sector20% Government Route
15. Insurance Companies74% Automatic Route
16. Insurance Intermediaries100% Automatic Route
economy FDI