The Various Prominent Sectors for FDI in India
A Foreign Direct Investment (FDI) is an investment that is made by foreign investors in a company that is foreign based company. There are two types of FDI, one is the Green Field Investment, it is a fresh company that is established in a foreign country, while the other is Portfolio Investment, it offers a share of a foreign company that are all purchased or owned and acquired by a foreign company. There are two ways by which you can get your investment approved in India. A major form of getting approval from the automatic route or the RBI route and government route.
When an automatic route is taken it does not require any prior approval by the government of India or by the Reserve Bank of India. Investors are only required to notify and then file the documents in the concerned RBI office.
Types of Foreign Investment
- Wholly Owned Subsidiary
- Joint Venture
- Investment by FII
- Investment by GDRs, FDRs, FCCBs, etc.
Countries with Highest FDI inflows in India
- Mauritius with 31.07% share
- Singapore with 20.72% share
- Japan with 7.24% share
- Netherland with 6.76% share
- USA with 6.21% share
- Germany with 2.64% share
- Cyprus with 2.21%
- France with 1.55%
Some major sectors where FDI is permitted but caps are put on these sectors: