Licchavi Lyceum


Licchavi Lyceum

In which of the sectors in India, the Foreign Direct Investment is not allowed (banned) ?

In India, Foreign Direct Investment (FDI) is restricted or prohibited in certain sectors to safeguard national interests and security. As of my last knowledge update in September 2021, the following sectors were subject to restrictions or bans on FDI:

  1. Atomic Energy: FDI is prohibited in the atomic energy sector, which includes the generation of nuclear power.
  2. Gambling and Betting: FDI is not allowed in gambling and betting activities.
  3. Lottery Business: FDI is prohibited in the business of lotteries, including the state lottery schemes.
  4. Cannabis and Hemp Production: FDI is restricted in the production of cannabis, hemp, and related activities.
  5. Real Estate (Except Construction Development Projects): While FDI is allowed in the construction and development of real estate projects, there are restrictions in place for the purchase of agricultural land, farmhouses, and trading in real estate.
  6. Manufacture of Cigars, Cigarettes, and Tobacco Products: FDI is subject to certain restrictions in this sector.
  7. Railway Operations (Other Than Certain Areas): FDI is not allowed in railway operations except for certain segments like high-speed train systems, dedicated freight corridors, rolling stock, and signaling systems.
  8. Chit Funds: FDI is prohibited in chit fund companies.
  9. Nidhi Company: FDI is restricted in Nidhi companies, which are mutual benefit societies in India.

Please note that FDI policies may change over time based on government decisions and economic considerations. It’s essential to check the latest FDI policy and guidelines issued by the Reserve Bank of India (RBI) and the Department for Promotion of Industry and Internal Trade (DPIIT) for the most up-to-date information on FDI regulations and sectors.