Foreign Direct Investment (FDI)

Dec. 8, 2022

The Foreign Direct Investment into India is continuously increasing since 2014-15. In the last seven financial years, over 443 US billion dollars’ worth of FDI inflows have come into the country.


  • 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.