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FDI Policy - Procedure of Government Approval

Following are the Competent Authorities for grant of approval for foreign investment for sectors/activities requiring Government approval :

S. No


Activity/ sector

Administrative Ministry/





Ministry of Mines



a) Items requiring Industrial Licence under the Industries (Development & Regulation) Act, 1951, and/or Arms Act, 1959 for which the powers have

been delegated by Ministry of Home Affairs to DPIIT

Department of Defence Production, Ministry of Defence

b) Manufacturing of Small Arms and Ammunitions

covered under Arms Act 1959

Ministry of Home Affairs



Ministry of Information &



Print Media/Digital Media


Civil Aviation

Ministry of Civil Aviation



Department of Space



Department                 of



Private Security Agencies

Ministry of Home Affairs

(ix) (a)

Applications involving investments from an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country

{as required in terms of Press Note 3 of 2020 read with Foreign Exchange Management (Non-debt Instruments)    Amendment    Rules,    2020    dated


Concerned Administrative Ministry/Department as identified by the DPIIT



Cases pertaining to sectors/activities under Government approval route requiring security clearance as per the extant Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, FDI Policy and security guidelines, as amended from

time to time

Nodal         Administrative Ministries/Departments


Trading (Multi Brand Retail Trading and Food

Product retail trading)

Department for Promotion of

Industry and Internal Trade


FDI proposals by Non-Resident Indians (NRIs)/

Export Oriented Units requiring approval of the Government





Concerned Administrative Ministry/Department as identified by the DPIIT


Applications relating to issue of equity shares under the FDI policy under the Government route for import of capital goods/machinery/equipment

(excluding second-hand machinery)



Applications relating to issue of equity shares for

pre-operative/pre-incorporation expenses (including payments of rent etc.)



Financial services activity which are not regulated by any Financial Sector Regulator or where only part of the financial services activity is regulated or where

there is doubt regarding the regulatory oversight





Department Affairs













Applications for foreign investment into a Core Investment Company or an Indian company engaged only in the activity of investing in the

capital of other India Company(ies)



Banking (Public and Private)








Department                   of



                           In respect of sectors/activities which are presently under automatic route but required Government approval earlier as per the extant policy during the relevant period, concerned administrative Ministry/Department would be the Competent Authorities for the grant of post-facto approval for foreign investment.

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