FDI upto 100% is allowed through the automatic route for all manufacturing activities in Special Economic Zones (SEZs), except for the following activities:

v    Arms and ammunition, explosives and allied items of defence equipment, defence aircraft and warships;

v   Atomic substances;

v  Narcotics and psychotropic substances and hazardous chemicals;

v   Distillation and brewing of alcoholic drinks; and

v   Cigarettes/cigars and manufactured tobacco substitutes

Sectoral norm as notified by Government shall apply to foreign investment in services.

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Secretariat for Industrial Assistance
(Government of India)