Foreign Direct Investment (FDI)

About:

• Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest.
• With FDI, foreign companies are directly involved with day-to-day operations in the other country.
• FDI enters in India through either of the two routes:
• Automatic route
  • The non-resident or Indian company does not require prior nod of the RBI or government of India for FDI.
• Government-approval route
  • The government's approval is mandatory and the company will have to file an application through Foreign Investment Facilitation Portal.