A foreign direct investment (FDI) is an investment made by a company or entity based in one country, into a company or entity based inanother country.

Foreign direct investment (FDI) in India India has played an important role in the development of the Indian economy. FDI in India has in a lot of ways - enabled India to achieve a certain degree of financial stability, growth and development. This money has allowed India to focus on the areas that may have needed economic attention, and address the various problems that continue to challenge the country. India has continually sought to attract FDI from the world’s major investors.

• India is a major exporter of highly-skilled workers in software and financial services, and software engineering. India followed a socialist-inspired approach for most of its independent history, with strict government control over private sector participation, foreign trade, and foreign direct investment.

• India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment.

• FDI in India includes FDI inflows as well as FDI outflow from India. Also FDI foreign direct investment and FII foreign institutional investors are a separate case study while preparing a report on FDI and economic growth in India

Sovereign Risk Political Risk Commercial Risk Risk Due To Terrorism

Procedure under Automatic RouteProcedure under Government ApprovalInvestment by way of Share AcquisitionNew investment by an existing collaborator in IndiaGeneral Permission of RBI under FEMAParticipation by International Financial Institutions

Economic growthImprovement in Supply ChainBenefits for the FarmersImprovement in Customer Satisfaction: Boost Healthy Competition and check inflationImproved technology and logisticsMore and Better Employment Opportunities

Domination of Organized RetailersLoss of jobsLoss of Self Competitive StrengthDistortion of CultureFarmers’ woesRise in unethical practices

Hotel & TourismTradingPowerDrugs & PharmaceuticalsPrivate BankingInsurance SectorTelecommunicationBusiness Processing OutsourcingInfrastructureServicesManufacturing

34 High Priority Industry Groups Export Trading Companies Hotels and Tourism-related Projects Hospitals, Diagnostic Centers Shipping Deep Sea Fishing Oil Exploration Power Housing and Real Estate Development Highways, Bridges and Ports Sick Industrial Units Industries Requiring Compulsory Licensing Industries Reserved for Small Scale Sector

These investors’ main interest is access to emerging markets of the developing countries, a safe and secure return on their investment and the stability of the host country’s political environment. India is a country with enormous potential for development. India needs to wake up to the realities of the global investment markets, and start to notice the preferences of the foreign investors. India has to bring in sweeping reforms to completely liberalize its economy, abandon the inefficient protectionist policies regarding its inefficient domestic industry, curb the cancer of corruption and offer the appropriate tax incentives to the foreign investors. If the Indian government hesitates to bring in the much-needed economic reforms soon, India may face a tale of lost opportunity.