A website detailing India's FDI norms from 2016 to 2026, outlining sector-wise caps, automatic route changes, and key reforms across defence, retail, pharma, and aviation.

In order to provide major impetus to employment and job creation in India, the government liberalized its foreign direct investmentstrategy in June 2016. Changes introduced in the policy include an increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. These amendments seeked to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors.

These reforms have largely remained in place through 2026, with a few further relaxations. Below we summarize the original 2016 changes (many of which remain relevant) and highlight major updates through 2026. 

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FDI Norms in India: 2016–2026 Key Updates

Understand India's FDI norms from 2016 to 2026 — sector-wise caps, automatic route changes, and key reforms in defence, retail, pharma, and aviation.