Prohibited sectors in FDI Policy 2017

Introduction

Under the scheme of Foreign Direct Investment (FDI), there are certain permitted sectors and certain prohibited sectors. If any sector is regarded as prohibited by the government, then the foreign investment shall not be allowed in that particular sector.

Prohibited sectors in FDI policy in which no foreign investment is allowed

There are eight sectors which are defined by the government as prohibited, i.e. no foreign investment is allowed under those sectors. Here is the list of prohibited sectors in FDI policy:

• Lottery business including government/private lottery, online lotteries etc.
• Gambling and betting including casinos etc.
• Chit funds
• Nidhi Company
• Trading in Transferable Development Rights (TDRs)
• Real estate business or construction of farm houses. Further, the real estate business shall not include development of townships, construction of residential/commercial premises, roads or bridges and real estate investment trusts (REIT).
• Manufacturing of cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes
• Activities/sectors not open to private sector investment e.g. atomic energy and railways operations except which are permitted.

Conclusion

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