Investment sector FDI in Different Sectors

Investment sector FDI – With different cultures and a diverse topography, India is truly the land of opportunities. It has the world’s fastest growing telecommunications industry, a thriving automotive industry and a flourishing pharmaceutical sector amongst others- FDI consultancy

If you are looking for FDI in different sectors, you are at the right place. We help connect foreign investors to investment opportunities in the various sectors of India. While foreign direct investment is allowed in most sectors of the Indian economy, there are sectors like agriculture , food processing business, textile , pharmaceuticals where overseas investments are not permitted.

Investment in Food Industries

The food sector in India has successfully established its presence. India’s food ecosystem offers huge opportunities for investments with stimulating growth in the food retail sector, favourable economic policies and attractive fiscal incentives. The Government of India through the Ministry of Food Processing Industries (MoFPI) is also taking all necessary steps to boost investments in the food processing industry. The government has sanctioned 42 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 17 Mega Food Parks have become functional.

By 2020, Indian Food and Retail market is projected to touch $828.92 bn, while the dairy industry is expected to double to $140 bn.

100% FDI in food processing sector in India is permitted under the automatic route.

100% FDI in food processing is allowed through government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

• 32 %Share in India’s food
• 11 % Share in total employment
• 13 % Share in India’s exports
• 142 %Cropping intensity

AGRICULTURE

A significant sector in the Indian economy, the agriculture sector employs over 50% of the country’s workforce. The sector contributes around 18% to India’s Gross Domestic Product (GDP)

A significant sector in the Indian economy, the agriculture sector employs over 50% of the country’s workforce. The sector contributed around 18% to India’s Gross Domestic Product (GDP) in FY18. In terms of farm outputs, India ranks second worldwide with a high proportion of agricultural land and diverse agro-climate conditions that support the cultivation of different crops.- Investment sector FDI

The Gross Value Added by agriculture, forestry, and fishing is estimated at Rs 18.55 lakh crore (US$ 265.51 billion) in FY 2019.

As per data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the food processing industry in India received foreign direct investment (FDI) equity inflows worth USD 9.41 billion between April 2000 and June 2019.

One of the largest sectors in the country, Indian agriculture processed foods are exported to more than 120 countries.

FDI In Textiles & Garments

India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries. India’s overall textile exports during FY  2017-18 stood at USD $39.2 bn in FY18 and is expected to increase to USD $82 bn by 2021 from USD $31.65 bn in FY19.

Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibres has led India to be one of the world’s largest producers of textiles and garments. The country has become an attractive destination for FDI in the Indian textile industry thanks to foreign direct investment policy in textiles. The Indian domestic textile and apparel industry contributes 2% to India’s GDP, 14% of industrial production, 27% of the country’s foreign exchange inflows and constitutes 13% of country’s export earnings. Exports in the Textiles & garments industry are expected to reach $300 bn by 2024.- Investment sector FDI

PHARMACEUTICALS

FDI in Pharmaceuticals in India

India enjoys an important position in the global pharmaceuticals sector with a 20% share of generic medicines in supplies by volume. Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in UK.

India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The export of generic drugs is one of India’s core strengths. The country’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 19.14 billion in FY19.  Presently over 80% of the antiretroviral drugs used globally to combat AIDS are supplied by Indian pharmaceutical firms.

100% Foreign Direct Investment (FDI) in pharmaceuticals in India is allowed under the automatic route for green-field pharma.

100% Fdi In Drugs And Pharmaceuticals In India is allowed in brown field pharma; wherein 74% FDI in the Pharmaceuticals Sector is allowed under the automatic route and thereafter through government approval route.

• 20 % Generics medicines exports share (global)
• 11 % Contribution in overall exports
• 70 %Generic drugs revenue share
• 21 %Patented drugs revenue share

FDI In Civil & Aviation

The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world.

The country has 86 scheduled international airlines comprising of 5 Indian carriers and 81 foreign carriers, which ensure that India is well connected with most major countries. In FY20 (April-October 2019), domestic freight traffic stood at 0.80 million tonnes, while international freight traffic was at 1.20 million tonnes. 

The country’s passenger traffic stood at 199.60 million in FY20 (April-October 2019) where domestic passenger traffic reached 160.16 million and International passenger reached 39.43 million.

In February 2019, the Government of India sanctioned the development of a new green-field airport in Hirasar, Gujarat, with an estimated investment of Rs.1,405 crore ($194.73 mn). As of January 2019, the Government of India is working on a blueprint to promote domestic manufacturing of aircrafts and aircraft financing within the country.- Investment sector FDI

Up to 100% FDI in civil aviation in India is permitted in Non-scheduled air transport services under the automatic route.

Up to 100% FDI is permitted in helicopter services and seaplanes under the automatic route.

Up to 100% FDI is permitted in MRO for maintenance and repair organizations; flying training institutes; and technical training institutes under the automatic route.

Up to 100% FDI in aviation sector is permitted in Ground Handling Services subject to sectoral regulations & security clearance under the automatic route.

FDI In Biotechnology Sectors

The biotechnology sector in the country has played a significant role in enhancing India’s global profile. India stands among the top 12 biotech destinations in the world and ranks third in the Asia Pacific, with approximately 3% share in the global biotechnology industry. The Biotechnology industry in India, comprising about 800 companies, assumes a critical role in the Indian economy. Bio pharma is the largest sector contributing about 62 per cent of the total revenue followed by bio-services (18 per cent), bio-agri (15 per cent), bio-industry (4 per cent), and bio-informatics contributing (1 per cent).

By 2020, bio-incubation space of 175,000 sq. ft. has been planned with the target to support 50 world class bio-incubators. By 2025, Indian Biotechnology industry is expected to reach $100 bn.

100% FDI for biotechnology sector is allowed under the automatic route for green-field pharma.

100% FDI in biotechnology is allowed under the government route for brown field pharma in up to 74% FDI is under automatic route and beyond 74% is under the government approval route.

Up to 100% FDI in biotechnology in India is allowed under the automatic route for the manufacturing of medical devices.