India narrowing gap with China on FDI inflows: Nomura

E-retailers search for a way out of policy riders

India usurps China as top FDI destination: Report

FDI inflows up 37% to $39.32 billion in 2015

File photo of Economic Affairs Secretary Shaktikanta Das

Shaktikanta Das

Opening up a marketplace of controversy

Foreign Direct Investment: Rules eased for insurance, pension, securities and NBFCs

Foreign investors make a strong comeback

DIPP pushes for 100% FDI in marketplace e-tail

U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul

FDI in food processing to hit farmers, employment: CAIT

Packaging for fresh food produce

FDI In food processing could let govt come out of multi-brand logjam

<div>
	Foreign direct investment (FDI) is when a company takes controlling ownership in a business entity in another country. With FDI, foreign companies are directly involved with day-to-day operations in the other country. This means they aren&rsquo;t just bringing money with them, but also knowledge, skills and technology.</div>
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	Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.&nbsp;&nbsp;</div>
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	<strong>Where is FDI made?</strong></div>
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	Foreign Direct Investments are commonly made in open economies that have skilled workforce and growth prospect. FDIs not only bring money with them but also skills, technology and knowledge.</div>
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	<strong>FDI in India</strong></div>
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	FDI is an important monetary source for India&#39;s economic development. Economic liberalisation started in India in the wake of the 1991 crisis and since then, FDI has steadily increased in the country. India, today is a part of top 100-club on Ease of Doing Business (EoDB) and globally ranks number 1 in the greenfield FDI ranking.</div>
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	<strong>Routes through which India gets FDI</strong></div>
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	<strong>Automatic route: </strong>The non-resident or Indian company does not require prior nod of the RBI or government of India for FDI.</div>
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	<strong>Govt route:</strong> The government&#39;s approval is mandatory. The company will have to file an application through Foreign Investment Facilitation Portal, which facilitates single-window clearance. The application is then forwarded to the respective ministry, which will approve/reject the application in consultation with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce. DPIIT will issue the Standard Operating Procedure (SOP) for processing of applications under the existing FDI policy.</div>
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	<strong>Sectors which come under the &#39; 100% Automatic Route&#39; category are</strong></div>
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	Agriculture &amp; Animal Husbandry, Air-Transport Services (non-scheduled and other services under civil aviation sector), Airports (Greenfield + Brownfield), Asset Reconstruction Companies, Auto-components, Automobiles, Biotechnology (Greenfield), Broadcast Content Services (Up-linking &amp; down-linking of TV channels, Broadcasting Carriage Services, Capital Goods, Cash &amp; Carry Wholesale Trading (including sourcing from MSEs), Chemicals, Coal &amp; Lignite, Construction Development, Construction of Hospitals, Credit Information Companies, Duty Free Shops, E-commerce Activities, Electronic Systems, Food Processing, Gems &amp; Jewellery, Healthcare, Industrial Parks, IT &amp; BPM, Leather, Manufacturing, Mining &amp; Exploration of metals &amp; non-metal ores, Other Financial Services, Services under Civil Aviation Services such as Maintenance &amp; Repair Organizations, Petroleum &amp; Natural gas, Pharmaceuticals, Plantation sector, Ports &amp; Shipping, Railway Infrastructure, Renewable Energy, Roads &amp; Highways, Single Brand Retail Trading, Textiles &amp; Garments, Thermal Power, Tourism &amp; Hospitality and White Label ATM Operations.</div>
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	<strong>Sectors which come under up to 100% Automatic Route&#39; category are</strong><br />
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		Infrastructure Company in the Securities Market: 49%</li>
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		Insurance: up to 49%</li>
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		Medical Devices:up to 100%</li>
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		Pension: 49%</li>
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		Petroleum Refining (By PSUs): 49%</li>
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		Power Exchanges: 49%</li>
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	<strong>Government route</strong></div>
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	<strong>Sectors which come under the &#39;up to 100% Government Route&#39; category are</strong></div>
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		Banking &amp; Public sector: 20%</li>
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		Broadcasting Content Services: 49%</li>
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		Core Investment Company: 100%</li>
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		Food Products Retail Trading: 100%</li>
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		Mining &amp; Minerals separations of titanium bearing minerals and ores: 100%</li>
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		Multi-Brand Retail Trading: 51%</li>
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		Print Media (publications/ printing of scientific and technical magazines/ specialty journals/ periodicals and facsimile edition of foreign newspapers): 100%</li>
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		Print Media (publishing of newspaper, periodicals and Indian editions of foreign magazines dealing with news &amp; current affairs): 26%</li>
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		Satellite (Establishment and operations): 100%</li>
</ul>
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	<strong>FDI prohibition</strong></div>
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	There are a few industries where FDI is strictly prohibited under any route. These industries are</div>
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		Atomic Energy Generation</li>
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		Any Gambling or Betting businesses</li>
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		Lotteries (online, private, government, etc)</li>
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		Investment in Chit Funds</li>
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		Nidhi Company</li>
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		Agricultural or Plantation Activities (although there are many exceptions like horticulture, fisheries, tea plantations, Pisciculture, animal husbandry, etc)</li>
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		Housing and Real Estate (except townships, commercial projects, etc)</li>
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		Trading in TDR&rsquo;s</li>
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		Cigars, Cigarettes, or any related tobacco industry</li>
</ul>
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	<strong>FDI inflow</strong></div>
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	During the fiscal ended March 2019, India received the highest-ever FDI inflow of $64.37 billion. The FDI inflows were $45.14 billion during 2014-15 and $55.55 billion in the following year.</div>

Know what is Foreign direct investment (FDI), where FDI is made, FDI in India and other related FDI news here at Business Standard.

Page 22 - Latest Updates on FDI

India narrowing gap with China on FDI inflows: Nomura

FDI in India reaches record $51 billion in 11 mths of FY16: DIPP

India overtakes China as top FDI destination: Report

FDI inflows up 37% to $39.32 billion in 2015

98% of all FDI coming via automatic route: Shaktikanta Das

Opening up a marketplace of controversy

Traders, RSS-affiliate slam govt on 100% FDI in e-commerce

Govt allows 100% FDI in e-commerce marketplaces

Govt may permit 100% FDI in 25 more segments of NBFCs

FDI proposals of Rs 48,902 cr cleared till Jan in FY16

FDI in services sector up 85.5% in Apr-Dec

FDI in food processing to hit farmers, employment: CAIT

FDI in food processing could let govt come out of multi-brand logjam