Foreign Development Investment: A Boon for Indian Entrepreneurs and SMEs

Recently, the Government of India has relaxed FDI policy norms to make India an investor-friendly country. Since then the debate about how FDI helps Indian entrepreneurs and SMEs (small and medium enterprises) has gained momentum. Many people are against FDI whereas many others support it. However, if you take into account all kinds of arguments, you can safely say that FDI has more merits attached to it as compared to its demerits.

Let's understand how FDI will help Indian entrepreneurs and SMEs. FDI in India will give our entrepreneurs an access to global markets. Indians can learn best practices from across the world and then replicate those practices in their own country.

Besides, it provides better ecosystem wherein our entrepreneurs can prosper. Many foreign companies have funded Indian entrepreneurs' start-ups such as Hike, Ola, Zomato and Oyo Rooms. This ecosystem helps our entrepreneurs to compete at global level. For instance, Zomato is doing a real good job in Eastern Europe region.

Advantages of FDI in India are not limited to providing better environment for entrepreneurship, it also helps SMEs. Every heavy industry is followed by small and medium enterprises which cater to the demands of that heavy industry. For instance, as a result of FDI in automobile sector, companies like Volkswagen and Hyundai will set up their showrooms. Now, to cater to their needs, many ancillary units which specialize in automobile engineering would also set-up and earn profit. Generally, these ancillary units are SMEs. That's how SMEs get benefitted by FDI.

To know more about advantages of FDI for entrepreneurs and SMEs in India, you can call at +91-8800-100-284 or Mail at

Posted by Anita Aswal - 3rd November 15

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