Foreign direct investment or FDI is when a foreign entity invests in a business that is placed in a different country. In India, FDI equity inflows is a significant driver of economic growth. Ever since the opening up the Indian economy, the country has eased and relaxed FDI norms over the years.
This is because foreign direct investments not only bring in monetary funds, but they also promote development in the country’s infrastructure, helps in creating more jobs, and bring in managerial know how and new technology.
Most recently, the government of India introduced changes in the foreign direct investment policies in different sectors of the economy including digital media, single brand retail trade, aviation, contract manufacturing, and coal mining. These changes were proposed for the first time in this year’s budget that was presented by finance minister Nirmala Sitharaman.
Businesses look at funds from foreigners because raising capital within the country can prove to be a difficult task. Relatively, investments from outside the country are easy and the laws are liberalized. Every business, big or small, established or start up, at some point require investments. If you are an Indian business in search for overseas funds, you have landed in the right place.
We, at FDI India, help connect businesses based in India with foreign investors. We study the entire profile of the business and help connect them with the right investor, sharing their interests and goals.
Getting equity from foreign direct investment can be an elaborate task, for this reason, it is advisable to employee the services of FDI experts like us. We not only help you obtain FDI but we help you cross the biggest hurdle, i.e. meeting the right foreign investor.
Foreign investments in India can happen via two routes- automatic and government:
- Automatic route: Under this route, no prior approval of authority is required by the foreign investor. 100% FDI is allowed. This slows the investor to invest in any company they wish to.
- Government route: A prior approval is needed in order to proceed with FDI under this route.