FDI (Foreign Direct Investment) Policy of India.pptx

India's Foreign Direct Investment (FDI) policy encourages investment in most sectors, while restricting investment in certain areas. The policy aims to promote a favorable investment climate and create jobs.

1. FDI Policy of India

2. Foreign Investment in India is governed by the FDI (Foreign Direct Investment) of the GOI (Government of India) and the Foreign Exchange Management Act 1999. The two main concerns of the FDI policy framework are: To sustain India's impressive economic growth, foreign investments are necessary Protection of sectors that are of strategic interest such as defence, atomic energy etc.

3. Investment climate in India has improved considerably since the opening up of the economy in 1991. This is primarily attributed to ease in FDI rules in India. India, today is a part of the top 100 clubs on Ease of Doing Business ( EoDB ).  FDI inflows in India  stood at $45.15 Bn in 2014-15 and have consistently increased since then.  Total  FDI inflows in the country  in the last 23 years (April 2000 - September 2023) are $953.143 Bn while the total FDI inflows received in the last 9 years (April 2014 - September 2023) was $615.73 Bn which amounts to nearly 65% of total FDI inflow in last 23 years. In FY 2014-15, FDI inflow in India stood at mere $45.15 Bn, which increased to $60.22 Bn in 2016-17 and further to the highest ever annual FDI inflow of $83.57 Bn reported during the FY 2021-22. Total FDI inflows in the country in the FY 22-23 is $70.97 Bn and total FDI equity inflows stands at $46.03 Bn.

4. FDI ENTRY ROUTES INTO INDIA

5. T op 5 countries for FDI equity inflows into India FY 2022-23 Mauritius (24%), Singapore (23%), USA (9%), Netherland (7%) and Japan (6%)

6. Top 5 sectors receiving highest FDI Equity Inflow during FY 2022-23 are Services Sector (Finance, Banking, Insurance, Non Fin/ Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (16%), Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%) Automobile Industry (5%).

7. Top 5 States receiving highest FDI Equity Inflow during FY 2022-23 are Maharashtra (29%), Karnataka (24%), Gujarat (17%), Delhi (13%), and Tamil Nadu (5%).

8. PROHIBITED SECTORS