Question
Download Solution PDFAccording to the FDI policy of India, in which of the following areas 100% FDI is not allowed in equity by automatic route in India?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Private Security Agencies.
Key Points
- Foreign investment in the Private Security Agencies Sector is permitted only up to 49% and requires ‘Government Approval’ as per the extant FDI policy.
- Police Modernisation Division, Ministry of Home Affairs is the administrative Division for grant of approval for foreign investment in this sector.
- Foreign Direct Investment (FDI) is a major driver of economic growth and an important source of non-debt finance for the economic development of India.
| Sector-wise FDI limits | ||
| Sector | FDI Limit | Entry Route |
| Construction development projects | 100% | Automatic |
| Industrial Park | 100% | Automatic |
| Civil Aviation: Maintenance and repair organization | 100% | Automatic |
| Railway Infrastructure | 100% | Automatic |
| Private Security Agencies | 74% | Automatic up to 49% Above 49% and up to 74% under Government route |
| Multi Brand Retail Trading | 51% | Government |
| Broadcasting Content Services | 49% | Government |
Last updated on Jul 1, 2025
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