First let us begin by understanding what exactly is FDI or foreign direct investment? Foreign direct investment is when an investor living in one country invests in a business based in another country. Under FDI, the foreign investor (individual or business) owns 10 per cent of the company where the investment is being made.
This 10 per cent is a safe figure as it gives the investor enough control to develop a lasting interest in the business through controlling ownership and yet it is not enough for the investor to solely control important decisions. Having a controlling ownership is what differentiates a foreign direct investment from foreign portfolio investment.
One of the main purpose of FDI is economic development. Foreign direct investment equity inflows are a critical source of economic growth; for this reason, countries encourage more investors to invest in their business by offering them liberalised policies. India, over the years has revised its FDI norms in order to attract more investors.
Most recently, the Indian government made another tweak to its foreign direct investment keeping in mind the COVID-19 crisis. Alarmed by the “opportunistic” raising stake of the People’s Bank of China (PBoC) in the country’s largest non-banking mortgage provider HDFC, the centre revised its foreign direct investment policy. With respect to the amended policy, investments by entities from countries that share a border with India will now require a clearance from the Centre.
This step was taken in the wake of China moving in to acquire Indian assets even as the world struggled to fight the coronavirus pandemic that has brought life to a standstill.
If you are an Indian business locking for FDI in India, look no further. We are facilitators of foreign direct investment in the country and help you match with an overseas investor who shares the same interests as you.
We first go through your business proposal to gauge if you meet our prerequisites for applying for FDI. Once you meet our predetermined requirements, we help you find an investor for your business opportunity and help you out with all FDI related proceedings.