Summary

India’s restrictions on foreign equity ownership are greater than the average of the countries covered by the Investing Across Sectors indicators in the South Asia region and of the BRIC (Brazil, Russian Federation, India, and China) countries. India imposes restrictions on foreign equity ownership in many sectors, and in particular in the service industries. Sectors such as railway freight transportation and forestry are dominated by public monopolies and are closed to foreign equity participation. With the exception of certain activities specified by law, foreign ownership in the agriculture sector is also not allowed. Foreign ownership of publishing companies and newspapers is limited to a maximum of 26%. In the financial services sector, foreign capital participation in local banks is limited to 87% and in insurance companies to 26%. Furthermore, foreign ownership in the telecommunications sector (including fixed-line and wireless/mobile infrastructure and services) is limited to a less-than-75% stake.