India Intelligence Report

   Govt Clarifications on Farm Sector FDI



  • Govt allows 100% FDI in some Agri sectors

  • Tea 100% FDI allowed with caveats

The Department of Industrial Policy and Promotion in the Ministry of Commerce and Industry clarified that it will allow 100% foreign direct investment (FDI) under the automatic route for certain activities in the agriculture and plantation sector. This includes floriculture, horticulture, development of seeds, animal husbandry, pisciculture, aquaculture, cultivation of vegetables and mushrooms under controlled conditions, and services related to agro and allied sectors.

The Government will allow 100 FDI in tea plantation with prior approval as long asf 26% of equity is disinvested an Indian partner or the Indian public within 5 years and prior approval of the State Government if the use of land changes.

Home Page
Subscribe to receive this page daily by email
Unsubscribe from the mailing list