Sectoral FDI Caps in India: A Quick-Reference Guide by Industry
100% automatic-route FDI is the default assumption, but insurance, defence, media, and multi-brand retail all carry caps or approval conditions that change the entry timeline.
Most sectors in India allow 100% FDI under the automatic route, no prior government approval needed, just post-facto RBI reporting. But a meaningful minority of sectors carry caps, conditions, or approval requirements that materially change how long entry takes: insurance (74% cap, conditions apply), defence (74% automatic, above that government route), digital media (26%, government route), and multi-brand retail (51%, with state-level conditions).
The cap itself is only half the picture, several sectors that technically allow 100% automatic-route FDI still carry sub-conditions (minimum capitalization, sourcing norms, lock-in periods) that function like informal approval gates. Telecom and print media are common examples where the headline number understates the actual compliance lift.
Before committing to a timeline or a structure, it is worth a 30-minute sectoral classification check, the difference between automatic and government route is not just paperwork, it can add 8 to 12 weeks to entry.