FDI is also not permitted in retail trading, in any form, by means of e-commerce, for companies engaged in the activity of single/multi brand retail trading. 

Finance Minister Arun Jaitley, in his Budget Speech, has said, “FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including e-commerce platforms without any additional approval.”

This information was given by the MoS for Commerce & Industry Nirmala Sitharaman in a written reply in Rajya Sabha. 

She said that FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly. Significant changes are made in the FDI policy regime, from time to time, to ensure that India remains increasingly attractive and investor-friendly. 

She also said that Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. 

FDI up to 100% is allowed on the automatic route in most sectors/activities subject to applicable laws/ regulations; security and other conditionalities. Further, in various sectors, it is allowed up to the different limits, varying from 20% to 100%, subject to prescribed conditions.