Become A Partner Apply For FDI

ENQUIRY


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 IDs are enquiry@fdi.finance, info@fdi.finance, india@fdi.finance, and Contact Numbers are 1800 891 1610 and 8595911148. 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.
Methods of FDI and Sectors in Which It Is Prohibited

Methods of FDI and Sectors in Which It Is Prohibited

Simply put– Foreign Direct Investment is an investment in one country by an entity based in another country. The Indian government has over the years taken several measures to ease foreign direct investment policies in order to facilitate more overseas equity inflows into the country. This effort has made the country one of the most attractive destinations for FDI today.

Apart from being a significant driver of economic growth, FDI also helps bring in more job opportunities, new technology, managerial expertise, and improved infrastructure.

One main prerequisite of FDI is that the foreign investors is given at least 10 per cent voting rights in the business. This means that the investors’ interest in the firm is not superficial but is with the intention of a long-term association.

These voting rights are obtained by (methods in which FDI can be done):

  • By the means of including a fully owned subsidiary or firm anywhere
  • By obtaining shares in an associated company
  • Via a merger or an acquisition of a firm that is not related
  • By taking part in an equity joint venture with another investor or company

Now, while most sectors of the Indian economy is liberal when it comes to foreign direct investment, there are sectors where no or limited FDI is permitted. These sectors are:

  • Atomic Energy Generation
  • Trading in TDR’s
  • Agricultural or Plantation Activities (although there are many exceptions like horticulture, fisheries, tea plantations, Pisciculture, animal husbandry, etc)
  • Cigars, Cigarettes, or any related tobacco industry
  • Any Gambling or Betting businesses
  • Lotteries (online, private, government, etc)
  • Investment in Chit Funds
  • Housing and Real Estate (except townships, commercial projects, etc)

There are two ways by which a foreign investor can invest in India– the automatic route and the government route.

  • Automatic Route: Under this route, a prior approval from the government of India and its concerned ministries is not required. The RBI can be informed after the investment has taken place.
  • Government Route: Under this route of FDI approval, a prior permission by the government and its concerned ministries is mandatory.

Leave a Reply

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