7.20.5

Foreign Equity up to 100% is permissible for all manufacturing activities under automatic route except for the following:

(a) arms and ammunition, explosives and allied items of defence equipment, defence aircraft and warships

(b) atomic substances;

(c) narcotics and psychotropic substances and hazardous chemicals

(d) distillation and brewing of alcoholic drinks; and

(e) cigarettes/cigars and manufactured tobacco substitutes