FDI in India
Containing about 17.5% of the world population, and one of the major and fastest growing economies of the world, India is at present considered as being one of the best three destinations in the entire world for foreign direct investment in its various fast-thriving economic fields. For last two decades, especially after 1991, India has been receiving FDI in many different booming economic sectors from investors belonging to countries worldwide, particularly from US, Singapore, UK, Mauritius, etc. Considering these facts, the central government of India, as well the individual States of India, have been creating propitious and favorable environments and perfect and generous policies from time to time, to attract potential investors from countries all across the whole world every year. With a view to inform and help the global investors in connection with secure and lucrative foreign direct investment in india, very useful and beneficial information is exclusively provided in this web-article of our internationally commended law firm of India.
The FDI (Foreign Direct Investment) in India is well facilitated through both the modes, namely, the Governmental Approval Route and the Automatic Route. Again, the entry structures permitted for making fdi investment in India, form an array of smoothly manageable business and professional entities. More information about these routes and entry structures are also provided in the section below.
Foreign Direct Investment in Different SectorsThe number of economic fields open to foreign investors is continually growing in India since 1991. Today, these fields form a rather wide range, and include the following economic fields:
- Tea Plantations;
- Mining and Minerals;
- Defense Manufacturing;
- Telecommunications And Broadcasting;
- Print Media;
- Aviation And Airports;
- Single- And Multi-Brand Retail;
- Asset Reconstruction Companies;
- Medical Devices;
- Stock Exchanges & Depositories;
- Power Exchanges;
- Petroleum Refining;
- Courier Services;
- Oil & Gas;
- Electrical & Electronics;
- Information Technology;
- Tourism And Hospitality;
- Education; Food Processing;
- Textiles & Garments;
- Construction, Operation, And Maintenance of Certain Commodities and Activities Connected with Railways; and many other well-developing and fast thriving economic fields of booming India.
Swift, secure, and highly profitable fdi in different sectors of India is permissible through setting up a private or public limited company (either wholly-owned or joint venture), limited liability partnership (LLP), partnership firm, branch office (BO) or project Office (PO), non-profit company or organization having FCRA, etc. Again, under the governmental route, the applications for making fdi in india are examined, analyzed, and approved by any or more of the following bodies --- Foreign Investment Promotion Board (FIPB), the Cabinet Committee on Security, and the Cabinet Committee on Economic Affairs (CCEA). While in the automatic route, the desired investment is carried out without the mandatory permission of the central government of India. Here, it may also be noted that, under both these routes, FDI in any sector must comply with the FDI Policy of the central government of India and the directly concerned State government, and the rules and regulations of the RBI.