Foreign direct investment is an investment by an entity placed outside the country where the investment is being made. This type of investment is characterized by the notion of lasting interest that is ensured by the means of a controlling ownership. Thus, a foreign investor is given at least 10 per cent voting rights in the business.
Over the years, India has emerged as an attractive opportunity for foreign investment thanks to its economic reforms and liberalized FDI policies. The regulation for foreign investments in India has been regularly eased to encourage growth across different sectors. Most recently, the government introduced several reforms in FDI norms and policies in different sectors of the economy including single brand retail trade, digital media, contract manufacturing, aviation, and coal mining.
When capital is not readily available within the country, foreign direct investment becomes a significant source of investment for domestic companies.
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.
We have a wide-ranging list of interested foreign investors from all parts of the world who want to penetrate the Indian market with the right opportunity at hand. We will help connect the two of you for a great future.
There are two routes by which a foreign investor can invest in India: Automatic route and the government route.
- Automatic Route: Under the automatic route, the borrower can get a loan from a foreign entity without a prior approval from the Reserve Bank of India. However, here the loan agreement has to be registered with the RBI.
- Approval Route: Under the approval route, in order to get a loan from a foreign entity, the borrower is required to submit an application with the RBI in the prescribed form through authorized dealer as specified by the RBI.