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Foreign Direct Investments ( FDI ) in India for Agriculture, Animal Husbandry and Plantations

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As per Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2016, Notification No.FEMA.362/2016-RB, February 15, 2016, Issued by Reserve Bank of India, details of Foreign Direct Investments ( FDI ) in India for Agriculture, Animal Husbandry and Plantations are as below,

1. Agriculture & Animal Husbandry

  • Floriculture, horticulture, Apiculture and Cultivation Of vegetables & mushrooms under controlled conditions;
  • Development and production of seeds and planting ma­terial;
  • Animal Husbandry (including breeding of dogs), Pisiculture, Aquaculture, under controlled conditions; and
  • Services related to agro and allied sectors.
    Note : Besides the above, FDI is not allowed in any other agricultural sector/activity

1.1     Other Conditions
The term ‘under controlled conditions’ covers the following:

  • ‘Cultivation under controlled conditions’ for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where micro-climatic conditions are regulated anthropogenically
  • In case of Animal Husbandry, scope of the term ‘under controlled conditions’ covers–
    (a) Rearing of animals under intensive farming systems with stall- feeding. Intensive farming system will require climate systems (ventilation, temperature/humidity management), health care and nutrition, herd registering/pedigree recording, use of machinery, waste management systems as prescribed by the National Livestock Policy 2013 and in conformity with the existing ‘Standard Operating Practices and Minimum Standard Protocol.’
    (b) Poultry breeding farms and hatcheries where micro-climate is controlled through advanced technologies like incubators, ventilation systems etc.
  • (iii) In the case of pisciculture and aquaculture, scope of the term ‘under controlled conditions’ covers–
    (a) Aquariums
    (b) Hatcheries where eggs are artificially fertilized and fry are hatched and incubated in an enclosed environment with artificial climate control.
  • (iv) In the case of apiculture, scope of the term ‘‘under controlled conditions’ covers–
    a) Production of honey by bee-keeping, except in forest/wild, in designated spaces with control of temperatures and climatic factors like humidity and artificial feeding during lean seasons.
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Foreign Investment Cap (%) – 100%
Entry Route – Automatic

2. Plantation
2.1

  • Tea sector including tea plantations
  • Coffee plantations
  • Rubber Plantations
  • Cardamom plantations
  • Palm oil tree plantations
  • Olive oil tree plantations

Note: FDI is not allowed in any plantation sector/activity except those mentioned above.

2.2     Other Condition
Prior approval of the State Government concerned is required in case of any future land use change.

Foreign Investment Cap (%) – 100%
Entry Route – Automatic route

Reference : Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2016, Notification No.FEMA.362/2016-RB, February 15, 2016, Issued by Reserve Bank of India

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Foreign Direct Investments ( FDI ) in India for Agriculture, Animal Husbandry and Plantations