What is FDI limit in Agriculture ?

In India 100% FDI is permissible via automatic route in following sub sectors of Agriculture and Animal Husbandry:

Sub sectors:

Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, Aquaculture and Cultivation of Vegetables & Mushrooms under controlled conditions and services related to agro and allied sectors.

  • Apart from the above FDI is not allowed in any other agricultural sector/activity.

Companies dealing with Transgenic Seeds:

For companies dealing with development of transgenic seeds/vegetables, the following conditions apply:

  1. When dealing with genetically modified seeds or planting material the company shall comply with safety requirements in accordance with laws enacted under the Environment (Protection) Act on the genetically modified organisms.
  2. Any import of genetically modified materials if required shall be subject to the conditions laid down vide Notifications issued under Foreign Trade (Development and Regulation) Act, 1992.
  3. The company shall comply with any other Law, Regulation or Policy governing genetically modified material in force from time to time.
  4. Undertaking of business activities involving the use of genetically engineered cells and material shall be subject to the receipt of approvals from Genetic Engineering Approval Committee (GEAC) and Review Committee on Genetic Manipulation (RCGM).
  5. Import of materials shall be in accordance with National Seeds Policy.

Meaning of Under controlled conditions

  • Floriculture, Horticulture, Cultivation of vegetables and Mushrooms

    Cultivation under controlled conditions’ for the categories of Floriculture, Horticulture, Cultivation of vegetables and Mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where microclimatic conditions are regulated anthropogenically.

  • Development of Seeds

    Development of seeds will be considered to be ‘under controlled conditions’ when seed farms/laboratories use tissue culture or any other micro-propagation techniques for development and multiplication of seeds/planting material. Seed development in the case of anthuriums, orchids and other ornamental crops in green houses/net houses/poly houses is also be included in this category.

  • Animal Husbandry

    In case of Animal Husbandry, scope of the term ‘under controlled conditions’ includes –

    Rearing of animals under intensive farming systems with stall-feeding. Intensive farming system will require climate systems (ventilation, temperature/humidity management), health care and nutrition, herd registering/pedigree recording, use of machinery, waste management systems.

  • Poultry:

    Poultry breeding farms and hatcheries where microclimate is controlled through advanced technologies like incubators, ventilation systems etc.

  • Pisciculture & Aquaculture:

    In the case of pisciculture and aquaculture, ‘under controlled conditions’ includes –

  • Aquariums
  • Hatcheries where eggs are artificially fertilized and fry are hatched and incubated in an enclosed environment with artificial climate control.

Source: Department of Commerce,Govt. of India

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