ARTICLE · 09 JANUARY 2025

Foreign Direct Investment In India

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Foreign Direct Investment ("FDI") is a strategic avenue for fostering economic growth and globalization, where a non-resident individual or entity can invest directly in India.

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INTRODUCTION

Foreign Direct Investment ("FDI") is a strategic avenue for fostering economic growth and globalization, where a non-resident individual or entity can invest directly in India. Unlike passive investments in stocks or bonds, FDI entails acquiring significant ownership or control in the Indian entities, often including active participation in management and operations. FDI is a vital tool for bridging global markets, offering mutual benefits to investors and recipient countries alike. As per the Ministry of Commerce and Industry since 2014, India has attracted a cumulative FDI inflow of USD 667.4 billion (2014-24). This investment inflow spans 31 States and 57 sectors, driving growth across diverse industries. Most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route.

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