First we should know what is FDI? , which means investment in foreign country in share capital or in the company (public or private company) and in the form of controlling ownership. In India FDI is the main source of economic development. Non resident investor or Indian company does not need any approval but for investing in governmental organisation then need approval by Administrative ministry or department.
Procedure for FDI in India:-
1) Online application should be filed on Foreign Investment Facilitate Portal.
2) Concerned ministry/ department circulate the same within two days and circulate same to RBI for comments from FEMA perspective.
3) If the investor is from Pakistan or Bangladesh, should get clearance certificate from ministry of home affairs
4) The concerned ministry will provide comment within 4 weeks from receipt of online application.
5) Additional information/ clarifications may be asked from the applicant which is to be provided within a week
6) Proposals involving FDI exceeding INR 50bn shall be placed before Cabinet Committee of Economic Affairs.
7) Once the entire proposal is completed then within 8-10 weeks the same will be approved.
When it comes to agriculture and animal husbandry only some areas are allowed for FDI.
1) Floriculture, Horticulture, and Cultivation of Vegetables & Mushrooms under controlled conditions;
2) Development and Production of seeds and planting material;
3) Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, Apiculture; and
4) Services related to agro and allied sectors.
Beside this nothing else is allowed in this sector. FDI is 100% allowed subjected to laws and regulations. When it comes to banking and public sector, only 20% is allowed and controlled by government and in most of the sector FDI is 100%.FDI helps in development of economy and bringing new technology by other country and it creates employment.