Become A Partner Apply For FDI

INQUIRY


captcha
Fraud Warning Disclaimer : FDI India warns you against certain individuals that might falsely present themselves as our affiliate agents, representatives, or employees. Under this false pretence, they might try to gain access to your personal information or to acquire money as Consultation fee or any other form or other valuables from you by offering fictitious employment opportunities or by claiming that they are contacting you on our behalf. Don’t fall prey into the fraudulent misrepresentation. Such fraudulent claims and offers are received generally via email, text message, phone, or internet, etc.

FDI India would like to bring to your notice that our authorized official Email ID is inquiry@fdi.finance . FDI India shall not be liable for any claims, damage, or loss of any kind inflicted by any other unauthorized entity. Be very mindful of such scams.
Legal : We own all the information, images, text, logo, and other content provided by us. The use of information is strictly prohibited without our consent. We hold the right to take a legal action against any individual or organization violating or using our site information.
A Critical Source Of Economic Growth- FDI In India

A Critical Source Of Economic Growth- FDI In India

Since opening up its economy to overseas investments in 1991, India has become one of the top destinations for foreign direct investments. Foreign investors take advantage of relatively lower wages, tax exemptions and FDI facilitating norms.

Over the years, the government of India has made several reforms in foreign direct investment norms. More recently, the government approved several reforms in FDI regulations across several sectors such as digital media, single brands retail trade, coal mining, contract manufacturing, and aviation. These reforms were introduced in order to encourage more foreign investors to invest in the country after India witnessed a dip of 1 per cent in FDI equity inflows for the first time in 6 years.

Apart from being a critical source if economic growth, overseas investments into India businesses also brings in managerial knowhow, new technology, more jobs, and even improved infrastructure. It more than the transfer of monetary funds across borders as foreign direct investment comes with a notion of direct control. This is how it is distinguished from foreign portfolio investment.

Foreign investment is an integral part of the economy as it is enabled the country to achieve a certain level of financial stability.

FDI or foreign direct investment in India can be made in the form of joint ventures, financial collaborations, capital markets, and private placements.

Foreign investors can make their investments is almost all sectors. There are some sectors where no or limited FDI is allowed like the manufacture of cigarettes and tobacco, manufacture of electronic aerospace and defence equipment.

In order to invest in India, an investor must know that there are broadly three types of Foreign Direct Investment (FDI):

  1. Vertical Investment

Under vertical investment, a business that is differentiated to an extent is established in a foreign country.

  1. Horizontal Investment

Under this type of investment, an investor opens the same business in a foreign country.

  1. Conglomerate Investment

Under the conglomerate investment type, an investment is carried out even if the business is unrelated or different to its existing business.

To drive more deeply into foreign investment in India let us first outline the types of investors:

  1. Individual
  • FVCI (Foreign Venture Capital Investors)
  • Pension/Provident Fund
  • Financial Institutions
  1. Company
  • Foreign Trust
  • Sovereign Wealth Funds
  • NRIs (Non Resident Indians)/ PIOs (Persons of Indian Origin)
  1. Foreign Institutional Investors
  • Private Equity Funds
  • Partnership / Proprietorship Firm
  • Others

Leave a Reply

Your email address will not be published. Required fields are marked *