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Manual on Foreign Investment Policy

The Indian Government's attitude towards foreign investment has changed significantly during the past decade. Until the 1980s, foreign investment was permitted only in cases where a desired technology was not obtainable on any other terms. With the introduction of the Statement on Industrial Policy of 1991, the government began taking a more liberal attitude. Automatic approval was granted in specified high-priority industries for up to 51 percent direct foreign investment and in trading companies engaged primarily in export activities. In 2000, the Foreign Direct Investment (FDI) policy was further liberalised and now foreign investment up to 100 percent for new and existing companies / firms, is permitted under the automatic route (i.e. without requiring prior approval) for all items/activities except for a few specific sectors.

Government Policy on Foreign Equity Investment

Foreign investment is allowed in all areas other than the following sectors in which foreign investment is prohibited:

For all other sectors, there are two approval routes for foreign investment in India:
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This site was updated on 18th September 2018
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Tamil Nadu Industrial Guidance & Export Promotion Bureau
( Industries Department - Govt. of Tamil Nadu )
19-A, Rukmani Lakshmipathy Salai, Egmore, Chennai - 600 008. INDIA

Phone: +91-44-2855 3866 | Fax: +91-44-2855 3856 | guidance@tn.gov.in

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