The FDI table
| Activity | Cap and route | Key conditions |
|---|---|---|
| Manufacture of vehicles and auto components, including EVs | 100%, automatic route | No government approval needed. The land-border rule below applies in every sector. |
| Battery cells and packs; EV charging | 100%, automatic route (manufacturing) | Setting up EV charging stations needs no licence (MHI, July 2026). Advanced battery components are on the list for faster land-border approvals. |
| Investor with a beneficial owner in a land-border country | Government route; up to 10% non-controlling is automatic | Press Note 2 (2026), in legal effect from 2 May 2026: beneficial ownership is tested as under the anti-money-laundering rules (more than 10%, or control). Holdings up to 10% without control need prior reporting on the FIF portal. |
| Fast-track list: advanced battery components, magnets, electronic components | Government route with a 60-day decision target | For stakes up to 49% where resident Indians keep majority ownership and control (DPIIT procedure, 4 May 2026). The list also covers capital goods and electronic components such as PCBAs, sensor modules and passive components; vehicles are not listed. |
| Automotive engineering R&D and other services not separately listed | 100%, automatic route | Subject to applicable laws and regulations, security and other conditions. |
Caps are from the Consolidated FDI Policy 2020 and later Press Notes; the FEMA (Non-debt Instruments) Rules govern pricing and reporting. For the generic framework see FDI routes and caps.
The land-border rule
The land-border rule applies in every sector, not only automotive. An investor with a beneficial owner from a country sharing a land border with India (such as China) falls under the government route.
- Test. Beneficial ownership is tested as under the anti-money-laundering rules: more than 10%, or control.
- Up to 10% without control. Automatic, but with prior reporting on the Foreign Investment Facilitation (FIF) portal. This easing came with Press Note 2 (2026), issued 15 March 2026 and in legal effect from 2 May 2026.
- Above 10%, or with control. Prior government approval through DPIIT and the administrative ministry, via the FIF portal.
- Fast track. For stakes up to 49% where resident Indians keep majority ownership and control, listed sectors have a 60-day decision target under the DPIIT procedure of 4 May 2026. In this sector the list covers advanced battery components, magnets and electronic components (including PCBAs, sensor modules and passive components) and capital goods. Vehicles are not on the list.
A joint venture with an Indian partner is the usual structure for a land-border investor using the 60-day route; see set-up roadmap for the entry vehicle points and land-border investors for the general rule.
Check: Map every beneficial owner in the chain above the investing entity, including funds and holding companies, before choosing a route. The test looks through to ownership and control, not only to the immediate investor’s country.
Charging and cells
- Setting up EV charging stations needs no licence (MHI reply, July 2026). PM E-DRIVE grants for public charging follow MHI’s charging guidelines of 26 September 2025; see regulators and registrations.
- Manufacturing of battery cells and packs is 100% automatic. Advanced battery components are on the 60-day land-border list, which matters for cell-makers with investors from land-border countries.
Pricing and reporting
The FEMA (Non-debt Instruments) Rules govern the pricing of shares issued to a foreign investor and the reporting of the investment. Shares must be priced at not less than fair value and the issue is reported on Form FC-GPR within 30 days through the RBI FIRMS portal. The deadlines are set out in the FEMA compliance calendar.
What to check next
- Confirm your activity sits in the 100% automatic rows and that no sector-specific condition applies to a planned downstream activity.
- Run the beneficial-ownership test on the whole chain; a holding above 10% or with control from a land-border country changes the route.
- If a land-border investor is involved, check whether the product (advanced battery components, magnets, electronic components, capital goods) is on the 60-day list and whether an Indian partner will keep majority ownership and control.
- Plan FC-GPR and other FEMA filings from day one; see the FEMA compliance calendar.