Author: shubham Agarwal

India FDI limits have become a focal point for global investors as the country emerges as a compelling destination for foreign investments. Owing to its rich cultural diversity and flourishing industries, India’s swiftly growing economy and varied cultural landscape offer numerous opportunities for investors eager to explore new markets. As India progresses in liberalizing its economy and opening various sectors to international participants, grasping the limits of Foreign Direct Investment (FDI) becomes essential for anyone considering investment in this region. This article aims to provide comprehensive insights into FDI in India—from entry pathways and sector-specific limits to compliance obligations and potential advantages. Whether you are an entrepreneur or an investor examining India’s dynamic market environment, this guide will assist you in navigating your investment journey with assurance. What is FDI? Foreign Direct Investment (FDI) refers to the investment made by an individual, company, or entity based in one country into the business or capital of another country — typically by acquiring ownership, control, or a lasting interest in a local enterprise. This type of investment usually involves acquiring significant stakes, establishing subsidiaries, or forming joint ventures in the host country. As per Foreign Exchange Management Act, 1999 (FEMA), FDI means investment through capital instruments (such as equity shares, convertible debentures, preference shares, etc.) by a person resident outside India in an unlisted Indian company or in 10% or more of the post-issue paid-up equity capital of a listed Indian company. Note:- In case an existing investment by a person resident outside India in capital instruments of a listed Indian company falls to a level below ten percent, of the post issue paid-up equity capital on a fully diluted basis, the investment shall continue to be treated as FDI. Explanation: – Fully diluted basis means the total number of shares that would be outstanding if all possible sources of conversion are exercised. FDI Entry Routes FDI in India is allowed through two routes: FDI Limits across Key Sectors (2025) India reviews its FDI policy regularly to keep pace with global trends and domestic priorities. Here is a snapshot of the latest sectoral limits and routes for FDI in 2025: SECTOR FDI LIMIT ROUTE Agriculture (specified activities like horticulture, animal husbandry, plantations) 100% Automatic Airport (Greenfield and brownfield) 100% Automatic Manufacturing 100% Automatic Insurance 100% Automatic Defence 100% Automatic (up to 74%), Government approval + security checks (above 74%) Telecom 100% Automatic (up to 49%), Government approval (above 49%) Pharmaceuticals (Greenfield) 100% Automatic Pharmaceuticals (Brownfield) 100% Automatic (up to 74%), Govt. (above 74%) E-Commerce 100% Automatic Single Brand Retail Trading 100% Automatic (up to 49%), Govt. (above 49%) Multi-Brand Retail Trading 51% Government Approval Private Sector Banking 74% Automatic (up to 49%), Govt. (above 49%) Public Sector Banking 20% Government Approval Civil Aviation 100% Automatic Railways (in select activities) 100% Automatic Construction Development 100% Automatic Real Estate Business (except REITs) Prohibited – Gambling, Betting, Lottery Prohibited – Atomic Energy Prohibited – Sectors where FDI is prohibited Despite the liberal regime, there are areas where FDI is strictly not allowed. These include: Recent Policy Updates The FDI cap in insurance has been raised from 74% to 100% for companies investing their entire premium within India. This move is expected to attract global insurers and boost market competition. The government continues to streamline regulations, decriminalize minor offenses, and roll out digital processes to improve the investment climate. Most FDI now comes through the automatic route, reducing bureaucratic hurdles. Investments from entities in countries sharing a land border with India (e.g., China, Pakistan, and Bangladesh) require prior government approval, regardless of sector or amount. This is a national security measure introduced in recent years. Where Is FDI Flowing? India attracted a record $81.04 billion in FDI in FY 2024–25, with the top recipient sectors being: The leading states for FDI inflows are Maharashtra, Karnataka, and Delhi, with Singapore, Mauritius, and the United States as the top source countries. What Can You Invest In?      Here is a quick guide to sectors open for FDI and their potential: India’s flourishing technology ecosystem permits 100% FDI in software, IT services, and fintech. The government’s initiative for “Digital India” makes this sector particularly appealing. Thanks to the “Make in India” campaign, the manufacturing sector is highly accessible for FDI. Areas such as electronics, automotive, and pharmaceuticals are notably attractive. Single-brand retail: Up to 100% FDI (with conditions). Multi-brand retail: Up to 51% FDI, but subject to government approval and local sourcing requirements. The banking, insurance, and Non-Banking Financial Companies (NBFCs) sectors have experienced liberalization, with insurance now permitting up to 100% FDI for eligible companies. Additionally, FDI up to 100% is allowed under the automatic route in most NBFCs provided they engage in 18 specified activities (such as leasing, asset finance, etc.). 100% FDI is permitted in construction, industrial parks, airports, and certain railway activities, positioning India as an attractive destination for infrastructure investors. Both Greenfield and Brownfield pharma projects are open to substantial FDI limits, with the sector attracting significant foreign interest. 100% FDI is allowed in most agricultural activities (like horticulture, animal husbandry, etc.) and food processing, bolstering India’s food security and export goals.     How to Invest: Steps for Foreign Investors Final Thoughts India’s Foreign Direct Investment (FDI) framework in 2025 is considered one of the most liberal in the world, allowing nearly all sectors to have up to 100% foreign ownership via the streamlined automatic route. Nevertheless, investors should remain aware of specific sector limitations, compliance obligations, and restricted areas. By employing an effective strategy and conducting thorough due diligence, investors can access significant opportunities in one of the fastest-growing economies globally. juris consultants shubham Agarwalwww.jurisconsultants.in

The principle of birthright citizenship enshrined in the 14th amendment to US constitution guarantees that all individuals born on American soil, will be granted US citizenship irrespective of their parents immigration status. This doctrine has been a cornerstone of American identity and legal framework for over 150 years. However, recent political endeavors, notably Donald Trump’s executive order aiming to end birthright citizenship born to noncitizens, have ignited intense debates and legal battles. While this order currently faces injunction and has not been implemented, its potential enforcement raised significant concerns, particularly business owners in the US.  Most of the businesses in the US are backed by migrated skilled workers. They form the backbone of the US economy. Trump’s executive order to end birthright citizenship has introduced significant uncertainty for the skilled foreign workers in the US. This policy change which denied automatic citizenship to children born on US soil to non-citizens parents  has sparked legal challenges and widespread debates. Following will be impact on business owners: It’s crucial to note that any attempt to revoke birthright citizenship faces substantial challenges. The fourteenth amendment’s clear language was upheld by the US Supreme Court notably in the landmark case of US v Wong Kim Ark, which confirmed that the children born in the US, regardless of their parent’s nationality are citizens of the nation. The executive has met with an immediate legal response. A federal judge in Washington has issued a temporary restraining order blocking the implementation of Trump’s executive order. Conclusion  While the revocation of birthright citizenship is a theoretical scenario due to the ongoing legal injunctions, its potential implementation poses significant risks to US business owners. From talent acquisition challenges and operational complexities to broader economic implications the ripple effect can be profound. Business leaders should stay informed about these developments and proactively engage in discussions to safeguard their interests. also read “Benefits of Incorporating in the United States” http://www.jurisconsultants.in shubham Agarwalwww.jurisconsultants.in

Starting your USA business is an exciting and rewarding opportunity. The United States offers a dynamic and strong business environment, making it one of the best choices for business establishment. This blog will walk you through the step-by-step process of how to start your business in the USA, highlighting everything you need to know to successfully launch your company in this thriving economy. www.jurisconsultants.in Choosing the Right Business Structure: The first and foremost important step is choosing the right business structure in the USA, but not all options are available to foreign citizens. The most preferred business types for non-USA residents are: Conclusion In short, starting a business in the USA requires meticulous planning and attention to both the formation process and ongoing compliance obligations. Each step, from choosing the right business structure to registering with the appropriate authorities, is crucial in creating a strong foundation for the business. Staying compliant with tax, reporting, and all the regulatory requirements is equally important to ensure that the business continues to operate smoothly and avoid penalties. As Legal Professionals, we at Juris Consultants Inc. understands the intricacies involved in starting a business in the USA and we specialize in helping the entrepreneurs to navigate such complexities by offering expert guidance on every aspect of the incorporation process. shubham Agarwalwww.jurisconsultants.in