100% FDI in Aviation, Defence and E-Commerce Sectors Approved by Union Government


For nine sectors the Union Government has relieved foreign direct investment (FDI) norms to give motivation to job creation and comfort for doing business in the country and the Prime Minister Narendra Modi has taken decision in this regard at a high-level meeting. India becomes most open economy in the world for FDI with this launch.

Some of these sectors are:

1. Food products:

  • 100 % FDI under government support route has been approved in this sector.
  • It will comprise trading in food products with through e-commerce, in reverence of food products industrial or produced in India.

2. Defence Sector:

  • 49 % FDI participation authorized by present FDI command in this sector for the impartiality of a company under automatic route.
  • So now FDI beyond 49 % has now been permitted through government sanction route, in cases subsequent in admission to modern technology in the country or for other reasons.
  • FDI limit also has been pertinent to Manufacturing of Small Arms and Ammunitions covered under Arms Act, 1959.

3. Pharmaceutical Sector:

  • In Greenfield pharma, 100 % FDI under automatic route has been accepted in this sector.
  • FDI up to 100 % under government authorized in brownfield pharma also has been approved.

4. Aviation Sector:

  • In Greenfield and Brownfield Airport Projects 100 % FDI under automatic route to support modernization of the current airports to establish a high standard.

5. Animal Husbandry:

  • In Animal Husbandry (including breeding of dogs), Aquaculture, Pisciculture and Apiculture 100 % FDI will be allowed under Automatic Route without necessity of controlled conditions.

6. Single Brand Retail Trading:

  • Entities commission single brand marketing trading have been relaxed from local tracking norms up to 3 years.
  • Objects engaged in to single brand wholesale trading of products having ‘state-of-art’ and ‘cutting edge’ technology have been relaxed from local tracking norms up to 5 years.


  • With these liberalised changes in FDI Policy, Union government has permitted 100 % FDI under government approval route for almost every sector, including defence except in few sectors mentioned in the small negative list. In this list, FDI continues to be prohibited in atomic energy, lottery, gambling, real estate and Real Estate Investments Trusts (REIT) and railways operations.


  • Union Government has carried key FDI policy reforms in a number of sectors, with Insurance, Pension Sector, Defence, Construction Development and Broadcasting etc. from 2014.
  • Actions was started by the Union Government have caused increased FDI inflows at 55.46 billion dollars in the financial year 2015 - 16.
  • This was the highest ever FDI invasion in India for a specific financial year.

- Published/Last Modified on: June 21, 2016