India Market Entry by Sector
Six sector guides covering foreign investment limits, approvals and setup points for foreign companies entering India.
Guides by sector
India sets foreign investment rules sector by sector. Some sectors are open to 100% foreign ownership on the automatic route, while others carry caps, conditions or separate licences. Pick your sector below to see the investment position, the structure most companies use, and the regulatory steps that follow incorporation.
- Manufacturing and PLI
- SaaS and IT services
- Pharma and medical devices
- EV and auto components
- E-commerce
- Fintech and financial services
If your sector is not listed, ask a partner and we will confirm the position for you.
What applies to every sector
Every sector sits under the FDI policy and the Foreign Exchange Management Act. Each foreign investment inflow must be reported to the Reserve Bank of India through the authorised dealer bank, and investors from countries sharing a land border with India need government approval under Press Note 3.
The land border rule has been revised, so read our note on Press Note 3 (2026) and manufacturing before planning a deal with a shareholder from a bordering country. Reporting follows fixed timelines after each inflow, and late filing attracts compounding fees. Our FDI guide explains the filing steps, and our India entry guide covers the common ground for any company, whatever its sector or home country.Other ways to narrow your search
Sector is only one filter. The home country of the investor decides which tax treaty applies, and the state where you locate decides which incentives you can claim. Most foreign companies need to answer all three questions, sector, country and state, before they choose a structure.
See India entry by home country for the US, UK, Europe, Japan and others, and state incentive guides for Telangana, Karnataka, Tamil Nadu, Maharashtra, Gujarat and Andhra Pradesh. Taken together, the three views let you shortlist a structure, a location and a funding route in one planning exercise rather than three separate ones.How A2 Consultants helps
A2 Consultants sets up the Indian entity, structures the investment under the FDI policy, files the foreign exchange reports, and then handles tax, payroll and compliance as your ongoing partner. We act as one point of contact, so licences, banking and tax registrations move in parallel rather than one after another.
A typical engagement starts with a call in which a partner reviews your sector, home country and timeline. We recommend an entity and investment route, prepare the incorporation and FDI filings, open the bank account and tax registrations, and set up monthly compliance. Where a sector licence or state incentive is involved, we run that application alongside the incorporation. See India company setup and FDI structuring, or contact a partner.This page is general information, not legal or tax advice. Rules and incentive terms change by notification, so confirm the current position before committing capital.