An important sector, services sectors of India contributes over 60 per cent to the country’s gross domestic product (GDP). It serves as an attractive sector for foreign investments. According to the Department for Promotion of Industry and International Trade (DPIIT), foreign direct investment in the services sector grew 37 per cent and currently stands at $9.15 billion in 2018-19. The services sector includes banking, finance, insurance, outsourcing, courier, tech testing, and analysis. In 2017-18, the sector attracted FDI equity inflows…

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After the economic liberalization from 1991, India has emerged as an attractive investment destination. Today, it is one the largest democracies in the world and offers tremendous opportunities for growth and investment. Foreign investors are willing to invest in India because of the easy foreign direct investment policies and special benefits like tax exemption. The wages in India are also relatively cheaper and the country has an abundant flow of workforce and a robust financial sector. It is, therefore, safe…

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In its most generic definition, Foreign Direct Investment is an investment in one country by an entity based in another country. Merely putting money into the assets of another country does not constitute FDI.  Foreign direct investment is characterized by direct control and lasting interest. The intent to actively participate in the day to day operations of the business is what distinguishes it from foreign portfolio investment. Therefore, it is safe to say that FDI does not only bring in…

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