FDI ENTRY ROUTES INTO INDIA

The investment climate in India has improved considerably since the opening up of the economy in 1991.

Jan 17, 2021 - 07:01

This is largely attributed to ease in FDI norms across sectors of the economy. India, today is a part of top 100 club on Ease of Doing Business (EoDB). FDI inflows in India stood at $45.15 bn in 2014-15 and have consistently increased since then. Moreover, total FDI inflow grew by 55%, i.e. from US$ 231.37 bn in 2008-14 to $358.29 bn in 2014-20 and FDI equity inflow also increased by 57% from $160.46 billion during 2008-14 to $252.42 bn (2014-20).

FDI inflows in India increased to $55.56 bn in 2015-16, $60.22 billion in 2016-17, $60.97 bn in 2017-18 and the country registered its highest ever FDI inflow of $62.00 bn (provisional figure) during the last Financial Year 2018-19. Moreover, India has attracted more than $74 bn investments across sectors during 2019-20.

Total FDI inflows in the country in the last 20 years (April 2000 - September 2020) are $729.8 bn while the total FDI inflows received in the last 5 years (April 2014- September 2019) was $319 bn which amounts to nearly 50% of total FDI inflow in last 20 years.

During FY 2020-21, total FDI inflow of $46.82 billion, 11.3% higher as compared to the first 7 months of 2019-20. FDI equity inflows received during April - September 2020 is $30 billion which is 15% more compared to April - September 2019 ($26 bn).

CATEGORY 1
100%

FDI Permitted through
Automatic Route
CATEGORY 2
UPTO100%

FDI Permitted through
Government Route
CATEGORY 3
UPTO100%

FDI Permitted through
Government + Automatic Route

Automatic Route

Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment.

Government Route

Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under Government route, are considered by respective Administrative Ministry/ Department.

For detailed definitions, clarifications/ exceptions, please refer to:official site if INDIA {https://static.investindia.gov.in/2020-10/FDI-PolicyCircular-2020.pdf} [https://www.investindia.gov.in/]