The Government of India has already eased rules for FDI or Foreign Direct Investment considerably, and only a handful of sectors exist where government approval is required for an investment over 49%. The Department for Promotion of Industry and Internal Trade (DPIIT) has begun to identify such sectors for which FDI rules can be liberalized.
In September, the Cabinet or council of ministers authorized to exercise executive decisions, cleared rules for coal mining, single-brand retail, contract manufacturing and digital media, while the finance ministry changed the norms for segments of the insurance business.
Currently, FDI above 74% requires prior approval in the case of businesses such as private security agencies, brownfield investment in healthcare, pharmaceuticals, and biotechnology.
FDI is prohibited in the lottery, gambling and betting, real estate, atomic energy and railway operations sectors.
Last updated: December 26th, 2025
