How to Expand Your Business Using Funding From Abroad
There is unrealized potential within every business. This is true for every nation, especially for businesses in a developing country like India. It remains that way due to a variety of reasons. For example :
- Shortage of capital
- Market sentiment
- Laws and regulations
- Capacity of the workforce
Barring the factors you cannot directly affect, one way to address the lack of funds for your business is by gaining knowledge about FDI in India.
What is FDI?
Foreign direct investment is an investment by an institution or an individual in a company situated in another country.
India is one of the most favored destinations for foreign investment. As per a Reuters report, the country received $81.72 billion in FDI during FY 2020-21, which was 10% higher than the preceding financial year.
Benefits of FDI
Indian companies greatly benefit from foreign funding in many ways. Some of them are
- Increased labor employment – With a large reserve of capital obtained from foreign investors, businesses can employ more workforce. This leads to rapid business expansion.
- Exposure to latest tools and technologies – Foreign investors also allow access to their technological innovations along with the capital they give a business. The receiving company can then use them to enhance its production processes.
- Global reach – Partnering with a foreign investor allows a business to extend its influence globally, opening a trade gateway between the collaborating countries.
The above factors highlight the importance of foreign investment in a company’s progression.
The Process To Obtain FDI
To avail of its advantages, Indian businesses can receive foreign investment through two methods:
- Automatic route – Businesses securing foreign funding through this route do not need any prior approval from the government.
- Government approval route – Under this route, the business and the investor need government approval before the investment is authorized.
The Central government has set up the Foreign Investment Facilitation Portal (FIFP) to simplify the investment process by providing a single point interface for aiding foreign investors.
The Process To Procure FDI, Simplified For You
It can be tough to get in touch with a foreign investor and take care of all the regulations required to get foreign funding.
No need to fret.
FDI India is a facilitation agency that helps your business connect with the right international investor.
We assist Indian businesses through the sophisticated FDI process and also guide foreign investors towards the right way to invest in India.
We help get foreign capital for Indian businesses operating in all major sectors such as automobile, chemicals, construction, healthcare, petroleum and natural gas, among many others.
FDI India helps businesses with
- Financial advice – expert guidance by financial advisers through the entire investment process.
- Project planning – complete support from market entry to expansion approaches using thorough market analysis and innovative strategies.
- Establish long-term partnerships – connect with suitable foreign investors to forge long-term cooperation for exciting prospects.
- Revival of NPAs and stressed businesses – get funding to rebuild your non-performing assets or ensure your struggling business’s smooth capital flow.