Sectors In India

AUTOMOBILE

World's Largest Tractor Manufacturer

Investment in Automobile Industry in India India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent year-on-year to 3.99 million units.. If you are looking for investment in the automobile industry in India, know that the sector is the largest tractor manufacturer, second-largest bus manufacturer and third largest heavy trucks manufacturer in the world. The industry saw a 25.5 per cent jump in FDI from 2018 to 2019.With FDI policy for automobile sector allowing 100% FDI under the automatic route, FDI equity inflows in Automobile industry amounted to $17.9 bn FDI between April 2000 and September 2017; contributing towards 5%... read more

7 %

Share in India's GDP
19 mn

Employentd generated
40 %

Share in global R&D
4.3 %

Share in India's exports

Sectors In India

CHEMICALS

Sixth Largest Producer of Chemicals in The World

FDI in Chemical Industry in India The chemical industry in India is an indispensable part of the economy of the country, for it constitutes around 6% of the country's GDP. Chemicals industry in India is highly diversified, covering more than 80,000 commercial products. It is broadly classified into Basic chemicals, Specialty chemicals, and Agrochemicals. The Indian chemicals industry is projected to reach $304 bn by 2025. India is a strong global dye supplier, accounting for approximately 16% of the world production of dyestuff and dye intermediates. Chemicals industry in India has been de-licensed except for few hazardous chemicals. Upcoming Petroleum, Chemicals and... read more

16 %

Dyestuff and dye intermediates share(global)
1.2 %

Nation's Gross Value Added
10.3 %

Chemical products exports share
3.4 %

Contribution to global chemical industry

Sectors In India

CONSTRUCTION

Second Largest FDI Recipient in India

Investment in Construction Industry The construction industry makes up for a major part of India’s GDP. Being a significant contributor to the GDP of India, the industry acts as a gateway for more opportunities. Investment in the construction industry in India, therefore, directly leads to the country’s economic development. The Construction industry in India consists of the real estate as well as the urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others, while urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and... read more

9 %

Share in India's GDP
4.8 %

Industrial growth (2008-14)
$ 1 tn

Infrastructural investments (2012-17)
44 mn

People employed

Sectors In India

MEDIA

Fifth Largest Media and Entertainment Market in The World

FDI In Media Sectors The Indian Media and Entertainment industry is a rapidly advancing sector and is making high growth strides. With the world’s largest newspaper circulation market and globally the largest film industry in terms of number of films made per year, the media sector is on the brink of a strong phase of growth, backed by rising consumer demand and improving advertising revenues. India has 118,239 registered publications (newspapers and periodicals), close to 2,500 multiplexes and more than 570 mn Internet users – second largest base after China, and is expected to reach out to 640 mn by 2019. Up to 74% FDI in the Media sector is... read more

11.8 %

Entertainment industry CARG(2016-21)
44.2 %

TV industry revenue share
38.1 %

Advertising revenue share
24 %

Print media revenue share

Sectors In India

PETROLEUM AND NATURAL GAS

Largest Exporter of Petroleum Products in Asia

FDI In Petroleum & Natural Gas The petroleum and natural gas sector is among the eight core industries in India and plays a major role in influencing decision making for all the other important sections of the economy. India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment. India consumed 204.92 MMT petroleum products and 58.64 BCM natural gas. The import dependency of crude oil and LNG during 2018 was 82.59% and 45.89% respectively. During 2018, petroleum import bill was $ 112 bn, a growth of 27% over $ 88 bn during 2017 - 18, and... read more

7.4 %

India's share in LNG imports
3.3 %

Oil consumption CARG(2008-17)
2.3 %

Gas consumption CARG(2007-16)
4.9 %

LPG sales growth(2016-17)

Sectors In India

CAPITAL GOODS

Capital Goods Contribute 10% to The Overall Manufacturing in India

FDI In Capital Goods Sectors The capital goods manufacturing sector facilitates engagement across sectors such as construction, engineering, infrastructure, consumer goods etc. Increasing demand has led to notable growth in the capital goods sector of India. The capital goods industry in FY 2018 -19 had an overall production figure amounting to $13.6 bn. Capital Goods industry in India provides approximately 5 mn direct employment. Market-oriented reforms such as "Power for All" along with plans to add 93 GW by 2022 will generate huge demand for power transmission and distribution (T&D) equipment. India became a permanent member of the Washington Accord (WA)... read more

12 %

Share in manufacturing
5 mn

Direct employment
40 %

T&D equipment demand
$ 5.5 bn

Electrical machinery exports

Sectors In India

CIVIL AVIATION

Ninth largest civil Aviation Market in the World

FDI In Civil & Aviation The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. The country has 86 scheduled international airlines comprising of 5 Indian carriers and 81 foreign carriers, which ensure that India is well connected with most major countries. In FY20 (April-October 2019), domestic freight traffic stood at 0.80 million tonnes, while international freight traffic was at 1.20 million tonnes. The country's passenger traffic stood at 199.60 million in FY20 (April-October... read more

16.0 %

Passenger traffic growth
15.6 %

Foreign Tourist Arrival growth
2.4

Total freight traffic
12.6 %

Aircraft movement growth

Sectors In India

ELECTRONIC SYSTEMS

Fastest Growing Smart Phone Market in Asia Pacific

FDI In Electronic Systems Sectors The fast-growing electronics market in India is backed by rapid urbanization and increased incomes. Digitization has led to increased demand for high-end technology devices, escalating the consumption of electronic devices. Furthermore, technology transitions such as the rollout of 4G/ LTE networks and IoT are driving accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the market. Similarly, the digital banking sector like wallet players and payment banks will raise demand for POS and VSAT-enabled mobile ATMs, which will... read more

26 %

Sector growth(annual)
185 %

Mobile manufacturing growth(annual)
17 %

Domestic manufacturing growth(annual)
8.6 %

Hardware market growth(annual)

Sectors In India

FOOD PROCESSING

World's Largest Producer of Milk

Investment in Food Industries The food sector in India has successfully established its presence. India's food ecosystem offers huge opportunities for investments with stimulating growth in the food retail sector, favourable economic policies and attractive fiscal incentives. The Government of India through the Ministry of Food Processing Industries (MoFPI) is also taking all necessary steps to boost investments in the food processing industry. The government has sanctioned 42 Mega Food Parks (MFPs) to be set up in the country under the Mega Food Park Scheme. Currently, 17 Mega Food Parks have become functional. By 2020, Indian Food and Retail market is projected to... read more

32 %

Share in India's food market
11.6 %

Share in total employment
13 %

Share in India's exports
142 %

Cropping intensity

Sectors In India

RAILWAY

4Th Largest Railway System in The World

FDI In Railway Sectors The Indian Railways is among the world’s 4th largest rail networks, behind only US, Russia and China. The Indian Railways route length network is spread over 115,000 km, with 12,617 passenger trains and 7,421 freight trains each day from 7,349 stations plying 23 million travellers and 3 million tonnes (MT) of freight daily. India's railway network is recognised as one of the largest railway systems in the world under single management. FDI in railway industry in India can drastically change the face of Indian Railways with an inflow of technology and capital. There is immense room for development in the country’s railway system and a... read more

6.1 %

Passenger traffic growth(2011-17)
25.2 %

Freight traffic growth(2011-18)
23 mn

Average daily passengers
$ 14.3 bn

Revenue from freight traffic(2016-17)

Sectors In India

RENEWABLE ENERGY

Asia’s Largest Market for off-grid Products

How to Get Investment for Solar Energy in India The Indian renewable energy sector is the 4th most attractive renewable energy market in the world. As of October 2018, India ranked 5th in installed renewable energy capacity. According to 2018 Climatescope report India ranked 2nd among the emerging economies to lead to transition to clean energy. With the increased support of government and improved economics, the sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role. Foreign Direct Investment will play a crucial role... read more

1000 + GW

Renewable energy potential in india
73 GW

Installed renewable energy capacity(as of Oct 2018)
21 %

Share in total installed capacity
171 %

Rise in solar power capacity(2014-16)

Sectors In India

RETAIL AND E-COMMERCE

India Ranked No. 1 in Global Retail Development Index (GRDI) in 2017

FDI in E-Commerce Sectors The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. Total consumption expenditure is expected to reach nearly USD $3,600 bn by 2020 from USD $1,824 bn in 2017. India’s e-commerce market has witnessed a phenomenal growth in the past recent years and is still flourishing. Foreign Direct Investment in E-Commerce in India can lead to an influx of capital, further enhancing its growth potential. India ranks among the best countries to invest in Retail space. Factors that make India so attractive include the second largest population in the world, a middle... read more

10 %

Contribution to India's GDP
8 mn

Share in India's employment
4 X

Rise in consumption
3 X

Growth in organized retail

Sectors In India

ROADS AND HIGHWAYS

World’s Second Largest Road Network

FDI In Roads & Highways Sectors The transport infrastructure sector is the fastest expanding component of the country's infrastructure sector. India has the one of largest road network across the world, spanning over a total of 5.5 million km. This road network transports 64.5% of all goods in the country and 90% of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with the improvement in connectivity between cities, towns and villages in the country. The Government of India (GoI) is planning to expand the national highway network to over 200,000 km. The Government launched the Bharatmala... read more

27 Km

Avg. highway constructed per day
9,829 Km

National Highway construction
15 %

Share of GDP on logistics & transportation
742

Projects awarded under PPP

Sectors In India

TELECOMMUNICATIONS

The World’s Second Largest Mobile Market.

FDI In Telecommunications Sectors India is currently the world’s 2nd largest telecommunications market with a subscriber base of 1.2 billion and has registered strong growth in the past decade and half. The industry has witnessed exponential growth over the last few years primarily driven by affordable tariffs, wider availability, roll out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers and a conducive regulatory environment. The number of smartphone users in India crossed the 300 million mark in 2016, making it the largest smartphone market in the world. Total number of Subscriber Identity Module... read more

7 %

Share in India's GDP
19 mn

Employentd generated
40 %

Share in global R&D
4.3 %

Share in India's exports

Sectors In India

TOURISM AND HOSPITALITY

India has the Seventh Largest Tourism Economy in The World

FDI In Tourism & Hospitality Sectors The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel Competitive Index (WEF); UNWTO Tourism Barometer (2016) currently ranks India at #40 in terms of global tourist... read more

1.2 %

Share in World Tourist Arrivals
1.9 %

Share in World Tourism Receipts
13.4 %

Growth in Foreign Tourist Arrival
10.2 %

Foreign Exchange Earning growth rate

Sectors In India

AUTO COMPONENTS

Rapidly Growing Indian Auto Market to Touch USD 300 Billion by 2026.

A stable government framework has led to the development of the Indian auto-components industry. Accounting for 2.3 per cent of India’s Gross Domestic Product (GDP), the sector employs as many as 1.5 million people, both directly and indirectly. The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the localization of their components in the country. The Indian auto-components industry has experienced healthy growth over the last few years. The Auto Components industry exports are currently valued at USD 15.2 bn. India is an emerging global hub for sourcing auto... read more

2.3 %

Share in India's GDP
3 mn

Employentd generated
18.3 %

Industry growth rate
1 mn +

Hybrid & electric vehicles sale

Sectors In India

BIOTECHNOLOGY

India is The Third Largest Biotech Destination in The Asia-Pacific Region

FDI In Biotechnology Sectors The biotechnology sector in the country has played a significant role in enhancing India’s global profile. India stands among the top 12 biotech destinations in the world and ranks third in the Asia Pacific, with approximately 3% share in the global biotechnology industry. The Biotechnology industry in India, comprising about 800 companies, assumes a critical role in the Indian economy. Biopharma is the largest sector contributing about 62 per cent of the total revenue followed by bio-services (18 per cent), bio-agri (15 per cent), bio-industry (4 per cent), and bio-informatics contributing (1 per cent).By 2020, bio-incubation... read more

150 %

Tax deduction on R&D expenditure
57.1 %

Annual industrial growth
64 %

Bio-pharma revenue share
18 %

Share in Bio-services

Sectors In India

GEMS AND JEWELLERY

India is The Largest Diamond Processing Centre in The World, Accounting for 95% of World’s Processed Diamonds

FDI in Indian Diamond Industry The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 7% of the country’s GDP and 15% to India’s total merchandise exports. It also employs over 4.5 million workers and is expected to employ 8.23 million by 2022. One of the fastest-growing sectors, it is extremely export oriented and labour intensive. India's gems and jewellery exports stood at US$ 18.49 billion in FY20P (till October’19, Provisional). During the same period, exports of cut and polished diamonds stood at US$ 12.24 billion, thereby contributing about 73.42 per cent of the total gems and jewellery exports in... read more

4.5 mn

Employment generation
13 %

Share in India's commodity exports
16 %

industry CAGR(2014-19)
7 %

Contribution to GDP

Sectors In India

IT AND BPM

India is The World’s Largest BPM Destination

FDI in IT Sector in India India has emerged as the world’s largest BPM destination with the IT-BPM sector having a staggering share of 45% in the total Indian services export. The sector is the largest employer within the private sector, employing 4.1 million people. It is, therefore, not surprising that the government has eased foreign investment policies in order to encourage more FDI in the IT sector in India. Indian IT industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the... read more

8 %

Share in India's GDP
56 %

Share in global outsourcing market
19 %

E-commerce growth
45 %

Share in Indian services export

Sectors In India

LEATHER

India is the Second Largest Producer of Footwear and Leather Garments in The World

FDI In Leather Sectors The Leather industry in India accounts for around 12.9% of the world’s leather production of hides/skins and handles a robust annual production of about 3 billion sq. ft. of leather. The country accounts for 9% of the world’s footwear production. The industry is known for its consistency in high export earnings and it is among the top ten foreign exchange earner for the country. India has an abundance of raw materials with access to 20% of the world's cattle and buffalo and 11% of the world’s goat and sheep population. The Leather industry is an employment intensive industry providing jobs to more than 4 million people, mostly... read more

$ 2.8 bn

Footwear exports
$ 519 mn

Leather garments exports
3 mn

People employed
$ 874 mn

Finished leather exports

Sectors In India

METALS & MINING

Fourth Largest Iron ORE Producer in the World

FDI In Mining Sectors One of the core sectors in India, the mining sector provides basic raw materials to many important industries. India holds a fair advantage in cost of production and conversion costs in steel and alumina. Its strategic location enables convenient exports to develop as well as the fast-developing Asian markets. India produces 95 minerals– 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals (including building and other minerals). Coal production grew at CAGR 4.6% over FY14-FY19 (to 730.35 MT) and is expected to grow 6-7% Y-o-Y over FY20. India ranks fourth in terms of... read more

11 %

Coal producer share
39.8 %

Petcoke imports growth
131.6

Mineral imports growth
5.9 %

India's share in Crude steel production

Sectors In India

PHARMACEUTICALS

The Country is Largest Vaccine Producer in The World

FDI in Pharmaceuticals in India India enjoys an important position in the global pharmaceuticals sector with a 20% share of generic medicines in supplies by volume. Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in UK. India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The export of generic drugs is one of India's core strengths. The country’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 19.14 billion in... read more

20 %

Generics medicines exports share(global)
11.9 %

Contribution in overall exports
70 %

Generic drugs revenue share
21 %

Patented drugs revenue share

Sectors In India

PORTS AND SHIPPING

16th Largest Maritime Country in The World

According to the Ministry of Shipping, around 95% of India's trading by volume and 70% by value is done through maritime transport. The government has also introduced various fiscal and non-fiscal incentives for enterprises that develop, maintain and operate ports, inland waterways and ship building in India. India has 12 major and 205 notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports and shipping industry plays a vital role in sustaining growth in the country’s trade and commerce. India is the 16th largest maritime country in the world, with a coastline... read more

679.4 MT

Cargo ytraffic at major ports(2017-18)
4.6 %

Cargo traffic growth
1301

Indian fleet strength(no. of vessels)
Capacity addition(2016-17)

Sectors In India

TEXTILES AND GARMENTS

Largest Producer of Cotton & Jute in The World

FDI In Textiles & Garments India’s textiles sector is one of the oldest industries in Indian economy dating back several centuries. India's overall textile exports during FY 2017-18 stood at USD $39.2 bn in FY18 and is expected to increase to USD $82 bn by 2021 from USD $31.65 bn in FY19. Abundant availability of raw materials such as cotton, wool, silk, jute and manmade fibres has led India to be one of the world's largest producers of textiles and garments. The country has become an attractive destination for FDI in the Indian textile industry thanks to foreign direct investment policy in textiles. The Indian domestic textile and apparel industry... read more

10 %

Expected sector CAGR(2016-2021)
2 %

Share in India's GDP
15 %

Textile exports share in overall exports
45 mn

Employentd generated

Sectors In India

THERMAL POWER

3rd Largest Coal Producer in The World

FDI In Thermal Power Sectors With a production of 1108 TW, India is the world’s 3rd largest producer and 4th largest consumer of electricity in the world with a total demand of 1905 TW expected by 2022. The Indian government has provided electricity in 14,955 villages so far and aims to electrify all 18,452 villages by end of 2019. There is about a 40% increase in transformation capacity from 5.3 lakh MVA in March 2014 to 7.4 lakh MVA in March 2017. India’s power sector is forecasted to attract investments worth INR 9-9.5 tn ($ 128.24-135.37 bn) between FY19-23. The Ministry of Power has set a target of 1,229.4 billion units (BUs) of electricity to be... read more

343.8 GW

Installed capacity of power stations
159.54 GW

Peak power requirement
11 %

Installed capacity CAGR(FY07-FY17)
67 %

Required hydropower capacity

Sectors In India

HEALTHCARE

India is The World's Second Largest Exporter of Ayurvedic & Alternative Medicine

FDI In Wellness Sectors Healthcare has become one of India’s largest sectors - both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. Ayurveda is rapidly gaining recognition all over the world. India is the world's 2nd largest exporter of Ayurvedic & alternative medicine. The wellness sector includes segments such as alternative therapies, beauty, fitness and... read more

$110 Bn

Industry size (2017)
6 %

Organised market contribution
40 %

Share in hospital beds (Pvt.)
22.90 %

Industry CAGR (2015-20)

Sectors In India

BFSI

One of the fastest growing FinTech markets in the world.

One of the fastest growing FinTech markets in the world, India ranks the highest in the FinTech adaptation rate amounting to 87%; a number that is significantly higher than the global average rate of 64%. India has transpired as a global FinTech giant with digital payments valued at $65 billion expected to grow at a CAGR of 20% till 2023. Indian FinTech market’s overall transaction value is estimated to increase from $65 billion in 2019 to $140 billion in 2023. With investments amounting to $286 million approximately, India has overtaken China as Asia’s top FinTech funding target. India’s investments of around $286 million were spread across 29 deals... read more

$14.1 bn

Value of digital payments transactions through UPI (2018)
29 %

Highest expected RoI on Fintech projects globally
$2.4 bn

FinTech software market size
$5.7 bn

Investmens in FinTech (2014-18)

Sectors In India

AGRICULTURE

A significant sector in the Indian economy, the agriculture sector employs over 50% of the country’s workforce. The sector contributes around 18% to India’s Gross Domestic Product (GDP).

A significant sector in the Indian economy, the agriculture sector employs over 50% of the country’s workforce. The sector contributed around 18% to India’s Gross Domestic Product (GDP) in FY18. In terms of farm outputs, India ranks second worldwide with a high proportion of agricultural land and diverse agro-climate conditions that support the cultivation of different crops. The Gross Value Added by agriculture, forestry, and fishing is estimated at Rs 18.55 lakh crore (US$ 265.51 billion) in FY 2019. As per data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the food processing industry in India received foreign direct... read more

Sectors In India

EDUCATION

Education is the backbone of a progressive society.

Education is the backbone of a progressive society. India holds a significant place in the global education industry thanks to its extensive, competent institutions for higher education. However, there is room for further growth and development in the Indian education system. India's large population of about 500 million offers a great opportunity for the education sector. Since the time of Nalanda, India has placed great importance on education. In accordance to various articles of the Indian Constitution, children aged 6 to 14 have the fundamental right to free and compulsory education provided by the government. Between April 2000 and September 2019, FDI inflows in... read more

Sectors In India

AUTOMOBILE

World's Largest Tractor

Investment in Automobile Industry in India India became the fourth largest auto market in 2018

CHEMICALS

Sixth Largest Producer of Chemicals in The

FDI in Chemical Industry in India The chemical industry in India is an indispensable part of the

CONSTRUCTION

Second Largest FDI Recipient in

Investment in Construction Industry The construction industry makes up for a major part of

MEDIA

Fifth Largest Media and Entertainment Market in

FDI In Media Sectors The Indian Media and Entertainment industry is a rapidly advancing sector and

PETROLEUM AND NATURAL GAS

Largest Exporter of Petroleum Products in

FDI In Petroleum & Natural Gas The petroleum and natural gas sector is among the eight core

CAPITAL GOODS

Capital Goods Contribute 10% to The Overall

FDI In Capital Goods Sectors The capital goods manufacturing sector facilitates engagement across

CIVIL AVIATION

Ninth largest civil Aviation Market in the

FDI In Civil & Aviation The civil aviation industry in India has emerged as one of the fastest

ELECTRONIC SYSTEMS

Fastest Growing Smart Phone Market in Asia

FDI In Electronic Systems Sectors The fast-growing electronics market in India is backed by rapid

FOOD PROCESSING

World's Largest Producer of

Investment in Food Industries The food sector in India has successfully established its presence.

RAILWAY

4Th Largest Railway System in The

FDI In Railway Sectors The Indian Railways is among the world’s 4th largest rail networks,

RENEWABLE ENERGY

Asia’s Largest Market for off-grid

How to Get Investment for Solar Energy in India The Indian renewable energy sector is the 4th most

RETAIL AND E-COMMERCE

India Ranked No. 1 in Global Retail Development

FDI in E-Commerce Sectors The Indian retail industry has emerged as one of the most dynamic and

ROADS AND HIGHWAYS

World’s Second Largest Road

FDI In Roads & Highways Sectors The transport infrastructure sector is the fastest expanding

TELECOMMUNICATIONS

The World’s Second Largest Mobile

FDI In Telecommunications Sectors India is currently the world’s 2nd largest

TOURISM AND HOSPITALITY

India has the Seventh Largest Tourism Economy in

FDI In Tourism & Hospitality Sectors The Indian tourism and hospitality industry has emerged

AUTO COMPONENTS

Rapidly Growing Indian Auto Market to Touch USD

A stable government framework has led to the development of the Indian auto-components industry.

BIOTECHNOLOGY

India is The Third Largest Biotech Destination in

FDI In Biotechnology Sectors The biotechnology sector in the country has played a significant role

GEMS AND JEWELLERY

India is The Largest Diamond Processing Centre in

FDI in Indian Diamond Industry The Gems and Jewellery sector plays a significant role in the

IT AND BPM

India is The World’s Largest BPM

FDI in IT Sector in India India has emerged as the world’s largest BPM destination with the

LEATHER

India is the Second Largest Producer of Footwear

FDI In Leather Sectors The Leather industry in India accounts for around 12.9% of the

METALS & MINING

Fourth Largest Iron ORE Producer in the

FDI In Mining Sectors One of the core sectors in India, the mining sector provides basic raw

PHARMACEUTICALS

The Country is Largest Vaccine Producer in The

FDI in Pharmaceuticals in India India enjoys an important position in the global pharmaceuticals

PORTS AND SHIPPING

16th Largest Maritime Country in The

According to the Ministry of Shipping, around 95% of India's trading by volume and 70% by value is

TEXTILES AND GARMENTS

Largest Producer of Cotton & Jute in The

FDI In Textiles & Garments India’s textiles sector is one of the oldest industries in

THERMAL POWER

3rd Largest Coal Producer in The

FDI In Thermal Power Sectors With a production of 1108 TW, India is the world’s 3rd largest

HEALTHCARE

India is The World's Second Largest Exporter of

FDI In Wellness Sectors Healthcare has become one of India’s largest sectors - both in terms

BFSI

One of the fastest growing FinTech markets in the

One of the fastest growing FinTech markets in the world, India ranks the highest in the FinTech

AGRICULTURE

A significant sector in the Indian economy, the

A significant sector in the Indian economy, the agriculture sector employs over 50% of the

EDUCATION

Education is the backbone of a progressive

Education is the backbone of a progressive society. India holds a significant place in the global

Ease of doing business with FDI in India

About FDI in India

A major monetary source, Foreign Direct Investment (FDI) in India is a key driver of the country’s economic growth. Since the economic liberalization of 1991, foreign investments into the country has improved considerably. FDI norms and policies have been regularly eased over the years in order to attract and promote FDI in India.

India is a favourable investment destination for foreign investors given its relatively lower wages and special investment privileges in the form of tax exemptions etc. The country is today a part of the top 100 club on Ease of Doing Business (EoDB) and globally ranks 1^st in the Greenfield FDI ranking.

FDI India Entry Routes

FDI in India is permitted through two routes. The FDI market can be accessed through the Automatic Route or Government Route

AUTOMATIC ROUTE: Under this route, the non-resident investor or the Indian company does not require any prior approval from the Government of India for investments in the country. That means foreign direct investment opportunities can be met without any preliminary approval from the government.

GOVERNMENT ROUTE: Under this route, an approval from the Government of India is required before making an investment. Proposals for foreign investments coming under the Government route are considered by respective Administrative Ministry Department. Here, the process of foreign investments for an Indian company must get approval from the government and different cabinets.

Market Size

India is of the most attractive FDI destinations in the world. The government regularly reforms oversea investment norms in order to increase FDI investments in India.

According to figures released by the Department for Promotion of Industry and Internal Trade (DPIIT), Foreign Direct Investment equity inflows in India stood at 44.37 billion US dollars in 2018-19. This number is an indication of the government's many initiatives towards relaxing FDI norms and policies and its efforts to improve Ease of Doing Business.

Recent data for the year 2018-19 indicates that the services sector attracted the highest FDI equity inflow with US $ 9.16 billion. This figure was followed by computer software and hardware with US $ 6.42 billion, trading – US $ 4.46 billion and telecommunications – US $ 2.67 billion. Most recently, the total FDI equity inflows for the month of March 2019 touched US $ 3.60 billion.

During the period of 2018-19, India received the maximum FDI equity inflows from Singapore (US $ 16.23 billion), followed by Mauritius (US $ 8.08 billion), Netherlands (US $ 3.87 billion), USA (US $ 3.14 billion), and Japan (US $ 2.97 billion).

Investments and Developments

According to a trade review released by The Commonwealth in 2018, India has emerged as the top recipient of greenfield FDI inflows.

Significant announcements reflecting recent developments in FDI India:

In January 2020, Amazon India announced investment of US$ 1 billion for digitising small and medium businesses and creating one million jobs by 2025.
In January 2020, Mastercard announced its plans to invest up to US$ 1 billion in India over next five years to double-up its research and development efforts for the Indian market.
VMware, a leading software innovating enterprise based in the United States had announced an investment of US $ 2 billion in October 2018 in India by 2023.
In August 2019, Reliance Industries (RIL) announced one of India's biggest FDI deals, as Saudi Aramco will buy a 20 per cent stake in Reliance's oil-to-chemicals (OTC) business at an enterprise value of US$ 75 billion.
In August 2018, Bharti Airtel received an approval of the Government of India for the sale of 20 per cent stake in its DTH arm to an America based private equity firm, Warburg Pincus, for around $350 million.
In June 2018, in accordance with Idea’s appeal, 100 per cent FDI was approved by the Department of Telecommunication (DoT) followed by its Indian merger with Vodafone. This merger resulted in Vodafone Idea the largest telecom operator in India.
As far as FDI for Indian startups is concerned, in May 2018, Walmart acquired a 77 per cent stake in Flipkart for a figure of US $ 16 billion.
In February 2018, Ikea- the Swedish- founded multinational group declared its plans to capitalize up to Rs. 4,000 crore (US $ 612 million) in the state of Maharashtra by setting up its multi-format stores and experience centres.
By 2020, CG Group- a Kathmandu based conglomerate, is looking to invest Rs 1,000 crore (US $ 155.97 million) in India in its food and beverage business, stated Mr Varun Choudhary, Executive Director, CG Corp Global.
The investment arm of the World Bank Group- International Finance Corporation (IFC), is planning to invest about US $ 6 billion through 2022 in several sustainable and renewable energy programmes in India.

For more FDI updates you can check our news section.

Initiatives by the Government of India

The Government of India works within a policy framework pertaining to foreign investments in the country. The government has regularly eased FDI norms across sectors in the economy, with the aim of promoting FDI in India. Some recent initiatives by the Government of India are:

As of February 2019, the Government of India is working on a road map to achieve its goal of US$ 100 billion worth of FDI inflows.
In August 2019, government permitted 100 per cent FDI under the automatic route in coal mining for open sale (as well as in developing allied infrastructure like washeries).
In Union Budget 2019-20, the government of India proposed opening of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders.
In January 2018, the Government of India permitted 100 per cent FDI in single brand retail through the automatic route.
The government plans to further ease foreign direct investment policies in the defence sector under the automatic route. It is in talks with stakeholders to increase FDI to 51 per cent from the current 49 per cent, in order to give a boost to the Make in India initiative and to generate employment.
The Ministry of Commerce and Industry, along with the Government of India have made the approval procedures for foreign direct investment (FDI) proposals easy. This has been done by eliminating the approval of Department of Revenue and authorizing approval of all proposals requiring permission within 10 weeks after the receipt of application.
In January 2018, Government of India allowed foreign airlines to make an investment up to 49 per cent in Air India with an approval from the government. The investment cannot exceed 49 per cent directly or indirectly.
In September 2018, the Government released the National Digital Communications Policy, which predicts increasing FDI equity inflows in the telecommunications sector to US $ 100 billion by 2022.
In December 2018, the Government of India revised rules for Foreign Direct Investments related to e-commerce. According to the rules 100 per cent FDI is allowed in the marketplace based model of e-commerce. Also, any sales of any vendor through an e-commerce marketplace entity or its group companies have been limited to a 25 per cent of the total sales of such vendor.
In order to give a boost to the Insurance sector, the government of India is considering 100 per cent FDI in Insurance Intermediaries.

In February 2019, a Draft National e-Commerce Policy was introduced by the Government of India. This policy encourages foreign investments in the marketplace model of e-commerce. It also states that the FDI policy for e-commerce sector has been developed to ensure a level playing field for all participants.

Prior approval by the government will not be required for foreign investments up to an extent of 100 per cent in real estate broking services.

As FDI consultants, we study initiatives by the government in order to offer an informed consultation. FDI for Indian companies come with tremendous rules and regulations. This is where we come in. We take care of the entire process for you.

How to Calculate FDI

Foreign direct investment is the sum of equity capital, long term capital, and short term capital as reflected in the balance of payments. FDI is characterized by participation in management, joint-venture, transfer of technology and expertise.

The stock of foreign direct investment is the net (i.e., the outward FDI minus inward FDI) cumulative FDI for any given duration.

Who Introduced FDI in India?

Foreign direct investment (FDI) in India was introduced in 1991 under the Foreign Exchange Management Act (FEMA) implemented by the then finance minister, Dr. Manmohan Sign. It commenced with the baseline of 1 billion dollars in 1990.

India, today is considered as an important destination for foreign direct investment. The major sectors that attract overseas investment are telecommunications, construction activities, and computer software and hardware.

Being an FDI agency in India, we facilitate FDI in finance, digital media, apparels, and other sectors.

Types of FDI

Being one of the best FDI facilitators, we are experts when it comes to overseas investment. Obtaining funds under FDI in India can be an overwhelming process. We are here to simplify the entire process for you.

Below outlines are the three types of foreign direct investments.

Horizontal FDI: This type of FDI arises when a firm replicates its home country-based business activities in the same value chain in the country where the investment is being made.
Vertical FDI: This type arises when a company through foreign direct investment moves upstream or downstream in varied value chains.
Platform FDI: This type arises when FDI from a source country into a destination country is carried out with the purpose of exporting to a third country.

Methods of FDI

The foreign direct investor may obtain voting power of an enterprise in an economy through any of the following methods:

By the means of including a fully owned subsidiary or firm anywhere
By obtaining shares in an associated company
Via a merger or an acquisition of a firm that is not related
By taking part in an equity joint venture with another investor or company

As an FDI company, we offer foreign investment facilitation in India. To know more about our services, you can get in touch with us.

What are FDI Equity Inflows?

Foreign direct equity inflows are the sum of inward direct investments into a country by non-resident or foreign investors. A foreign direct investment is an investment made by an entity not residing in the country the investment is being made in.

This investment is characterized by a controlling ownership in a business. FDI is, therefore, different from foreign portfolio investment (FPI) by the notion of direct control.

Foreign direct investment typically includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans”. This overseas investment generally involves participation in management, joint-ventures, transfer of technology, and expertise.

We offer FDI consulting in India and help bridge the gap between overseas investors and investment opportunities.

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Sectors In India

AUTOMOBILE

World's Largest Tractor Manufacturer

7 %

19 mn

40 %

4.3 %

Sectors In India

CHEMICALS

Sixth Largest Producer of Chemicals in The World

16 %

1.2 %

10.3 %

3.4 %

Sectors In India

CONSTRUCTION

Second Largest FDI Recipient in India

9 %

4.8 %

$ 1 tn

44 mn

Sectors In India

MEDIA

Fifth Largest Media and Entertainment Market in The World

11.8 %

44.2 %

38.1 %

24 %

Sectors In India

PETROLEUM AND NATURAL GAS

Largest Exporter of Petroleum Products in Asia

7.4 %

3.3 %

2.3 %

4.9 %

Sectors In India

CAPITAL GOODS

Capital Goods Contribute 10% to The Overall Manufacturing in India

12 %

5 mn

40 %

$ 5.5 bn

Sectors In India

CIVIL AVIATION

Ninth largest civil Aviation Market in the World

16.0 %

15.6 %

2.4

12.6 %

Sectors In India

ELECTRONIC SYSTEMS

Fastest Growing Smart Phone Market in Asia Pacific

26 %

185 %

17 %

8.6 %

Sectors In India

FOOD PROCESSING

World's Largest Producer of Milk

32 %

11.6 %

13 %

142 %

Sectors In India

RAILWAY

4Th Largest Railway System in The World

6.1 %

25.2 %

23 mn

$ 14.3 bn

Sectors In India

RENEWABLE ENERGY

Asia’s Largest Market for off-grid Products

1000 + GW

73 GW

21 %

171 %

Sectors In India