Foreign Direct Investment Consultant in India
Foreign investment in India is governed by the FDI policy formulated by the government of India for the provision of the Foreign Exchange Management Act(FEMA). The changes in foreign invement policies are made to pull down the barrier and increase the free flow of foreign capital and international trade. As per the policies and regulations foreign investment in India is facilitated by the FDI, FIIS(Directly, via the Portfolio Investment Scheme, PIS), NRI’s/persons of Indian origin, directly or indirectly via the PIS, inclusion of qualified investors, or by foreign Venture capital investors(FVCIs).
However, foreign investment approval policies prohibit FDI in the following unauthorised sectors:
- Betting and Gambling
- Private lottery and online lottery, including government lottery business
- Retail trading except single brand retailing
- Chit fund business
- Nidhi company
- Real state and farmhouse
- TDRS- Trading in transferable development rights
- Manufacturing of products like tobacco, cigars, cheroots, cigarillos, cigarettes, and other tobacco products.
- Some agriculture components
Furthermore, details of the sector permitted by the policies to acquire maximum foreign investment are highlighted below.
- Single-brand retail trading
- Multi-brand retail trading
- Infrastructure and construction development
- Telecom sector
- Reconstruction companies
- Investment in infrastructure companies in the stock market
- Investment in credit information companies
- Investment in commodity exchange
- Investment in public sector bank
- Investment in print media, news, and current affairs.
Apart from this, foreign investment in India can be considered through both direct and indirect foreign investment.
Direct foreign investment: Investment made by a non-resident body directly in an Indian company is considered direct foreign investment. The total amount is considered a foreign investment while calculating a company's total investment.
Indirect foreign investment: Investment made by companies which are regulated or controlled by non-resident entities, the entire amount is considered indirect foreign investment.
