FDI Route Checker for Indian Startups
Check whether your sector allows foreign investment via the automatic or government approval route — and get the FEMA compliance steps you need to follow.
Based on DPIIT consolidated FDI policy (October 2020) and subsequent press notes through 2024. Sector conditions are subject to change — verify at dpiit.gov.in before proceeding. Engage a FEMA/RBI specialist for high-value rounds or complex structures.
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Frequently asked questions
What is the difference between automatic and government approval FDI routes in India?
Under the automatic route, foreign investors do not need prior approval from the Government or RBI — the investment can be made directly, subject only to sectoral caps and FEMA reporting requirements. Under the government approval route, prior approval from the relevant Ministry (via DPIIT/FIPB successor) is required before the investment can be made.
Which sectors are prohibited for foreign direct investment in India?
FDI is prohibited in: lottery businesses, gambling and betting, chit funds, Nidhi companies, trading in transferable development rights, real estate business (not construction), manufacturing of tobacco products, atomic energy, railway operations (except permitted activities), and inventory-based e-commerce models.
What is FC-GPR and when must it be filed after receiving foreign investment?
FC-GPR (Form Foreign Currency — Gross Provisional Return) is the RBI reporting form for foreign investment received. It must be filed via the FIRMS portal (rbi.org.in) within 30 days of allotting shares to the foreign investor. The form requires investor details, investment amount, share class, and a valuation certificate from a Merchant Banker or CA.
Can a DPIIT-recognised startup receive 100% FDI automatically?
Yes, if the startup operates in a sector that allows 100% FDI via the automatic route (e.g., IT/SaaS, e-commerce marketplace, EdTech, manufacturing). DPIIT recognition itself does not affect the FDI route or cap — the sector determines the FDI rules. All foreign investments must comply with FEMA reporting requirements regardless of DPIIT status.
What is the FLA annual return and when must it be filed with the RBI?
The Foreign Liabilities and Assets (FLA) return must be filed by July 15 each year with the RBI, by any company that has received foreign direct investment in any year. It reports the company's outstanding foreign liabilities (equity, borrowings) and assets (overseas investments, loans given). Non-filing attracts penalties under FEMA.