An Overview of The FDI Policy Framework of India

Foreign Direct Investment has a significant positive impact on the nation’s Development (FDI). The quantity of capital that is occasionally easily accessible domestically is insufficient for the entire development of a country. Using foreign capital is one way to bridge the gaps between domestic savings and investment. In contrast to earlier times, India can today attract substantially more foreign investments. The focus of the current study is on India’s FDI policies and its regulatory authority. The study discusses the procedure of FDI approval by different routes and sector-wise limits mentioned by the authority. The study also highlights the need for FDI, current trends in FDI, and available opportunities in the Indian environment. The Department of Industrial Promotion and Policy, the Ministry of Commerce and Industry, The World Investment Report, press releases and circulars from the Indian government, the Reserve Bank of India, and other sources provided the secondary data used in the study. According to the study’s findings, 80% of respondents from around the world intended to make investments in India, making it a major global hub for FDI. It has become a more appealing market for foreign investment after cutting corporation taxes and simplifying labor regulations.