The position in one line
Renewables, oil and gas and mining allow 100% FDI; nuclear stays closed. The caps below come from the Consolidated FDI Policy 2020 as amended, Invest India and MNRE. Sector licences and state approvals apply in every sector, and the land-border rule applies wherever an owner is from a neighbouring country.
FDI table
| Activity | Cap and route | Key conditions |
|---|---|---|
| Renewable generation and distribution (solar, wind, hybrids, storage) | 100%, automatic | Confirmed by MNRE in Parliament replies in 2026. Sector licences, state approvals and grid access rules still apply. |
| Other power generation (except atomic energy), transmission, distribution and trading | 100%, automatic | Not separately listed in the FDI Policy, which permits up to 100% under the automatic route for activities not listed, subject to applicable laws and regulations. |
| Power exchanges | 49%, automatic | No non-resident investor, including persons acting in concert, may hold more than 5% of the equity (FDI Policy para 5.2.24). |
| Oil and gas exploration, marketing, pipelines, LNG regasification and private-sector refining | 100%, automatic | Subject to the sectoral policy and regulatory framework for oil marketing and the policy on private participation in exploration and in national oil companies’ discovered fields. |
| Petroleum refining by public sector undertakings | 49%, automatic | No disinvestment or dilution of domestic equity in the existing PSUs. |
| Mining and exploration of metal and non-metal ores; coal and lignite | 100%, automatic | Titanium-bearing minerals: 100% under the government route. Subject to the mining and coal laws; no FDI in mining of “prescribed substances” notified by the Department of Atomic Energy. |
| Atomic energy (nuclear power generation) | Prohibited | The SHANTI Act 2025 (assent 21 December 2025) licenses government and Indian-incorporated companies, subject to AERB safety authorisation. FDI is still prohibited (RBI Master Direction, June 2026); an FDI policy approved by the Atomic Energy Commission was in inter-ministerial consultation in April 2026. |
| Investors from countries sharing a land border with India | Government route | Applies where such a person is the beneficial owner (PMLA: more than 10%, or control). Up to 10% non-controlling: automatic with prior reporting (Press Note 2 of 2026, effective 2 May 2026). 60-day decision target for up to 49% in listed manufacturing sectors where resident Indians keep majority and control. |
Reading the table
Renewables and other power
Renewable generation and distribution, including storage, is 100% automatic and was confirmed by MNRE in Parliament replies in 2026 (PIB, 16 Mar 2026). Conventional generation other than atomic energy, transmission, distribution and trading are not separately listed in the FDI Policy; they fall under the general position that activities not listed may take up to 100% under the automatic route, subject to applicable laws. In both cases the FDI cap is only the first gate: the sector licences, state approvals and grid access rules on the regulators page still apply.
Power exchanges
Power exchanges are capped at 49% on the automatic route, and no single non-resident investor, including persons acting in concert, may hold more than 5% of the equity (FDI Policy para 5.2.24).
Oil, gas and refining
Exploration, marketing, pipelines, LNG regasification and private-sector refining take 100% automatic, subject to the sectoral policy for oil marketing and the policy on private participation in exploration and in national oil companies’ discovered fields. Refining by public sector undertakings is capped at 49% automatic, with no disinvestment or dilution of the existing PSUs’ domestic equity.
Mining
Mining and exploration of metal and non-metal ores, coal and lignite are 100% automatic, subject to the mining and coal laws. Two carve-outs apply: titanium-bearing minerals are 100% but on the government route, and there is no FDI in mining of “prescribed substances” notified by the Department of Atomic Energy.
Atomic energy
The SHANTI Act 2025, which received assent on 21 December 2025, licenses the government and companies incorporated in India to set up nuclear facilities, subject to AERB safety authorisation. That opens the activity to Indian private companies; it does not open it to FDI. The RBI Master Direction of June 2026 still lists atomic energy as prohibited. An FDI policy approved by the Atomic Energy Commission was in inter-ministerial consultation in April 2026 (PIB (DAE), 1 Apr 2026; Swarajya, 2026). Until a policy is notified, a foreign investor cannot hold equity in a nuclear generation company.
Land-border investors
Where a person from a country sharing a land border with India is the beneficial owner of the investing entity (more than 10%, or control, on the PMLA test), the investment needs government approval whatever the sector cap. Press Note 2 of 2026, effective 2 May 2026, allows up to 10% non-controlling holdings on the automatic route with prior reporting, and sets a 60-day decision target for proposals of up to 49% in listed manufacturing sectors where resident Indians keep majority ownership and control. The generic rules are on the land-border investors page.
Check: Beneficial ownership is tested through the whole chain, including fund investors and co-investors. Screen the ownership of every platform partner before signing.
What to check next
- Match your exact activity to a row: a storage project, a hybrid plant and a power trading licence sit in different rows with different conditions.
- Confirm whether any sectoral policy (oil marketing, mining or coal law, DAE prescribed substances) adds conditions beyond the cap.
- If nuclear is in scope, monitor the DAE FDI policy; as of 1 October 2026 FDI remains prohibited and only Indian-incorporated licensees can build.
- Screen beneficial ownership against the land-border rule and, if it applies, plan for the government route and the Press Note 2 reporting requirement.
- Read the cross-sector FDI routes and caps page for pricing, reporting and downstream investment rules that apply to every entry.