FOREIGN DIRECT INVESTMENT FOR INDIA

Overview: Foreign Direct Investment (FDI) refers to the investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets. In India, FDI has been a significant driver of economic growth and development.

FDI in India can be made through two main routes:

Automatic Route: 

Investors can invest without prior approval from the government in sectors permitted under this route.

Government Route: 

Investments in sectors not covered under the automatic route require prior approval from the government.

  • Economic Growth: FDI contributes to capital formation and job creation.
  • Technology Transfer: It facilitates the transfer of advanced technology and management expertise.
  • Boost to Exports: FDI can enhance India's export capabilities by establishing production facilities.
  • Conclusion: The FDI policy in India aims to create a favorable investment climate while ensuring that the country's economic interests are safeguarded. With ongoing reforms and an expanding market, India remains an attractive destination for foreign investors.

FORM :

  1. SECURITY CLEARANCE FORM DOWNLOAD HERE
  2. FDI CLARIFICATION FORM DOWNLOAD HERE
  3. ADDITIONAL INFORMATION IF RELATED TO PHARMACEUTICAL SECTOR DOWNLOAD HERE
  4. QUARTERLY COMPLIANCE REPORT PHARMACEUTICAL SECTOR DOWNLOAD HERE
  5. SOFT LOAN AS FDI DOWNLOAD LETTER FORMAT HERE

CLICK HERE FOR DOWNLOAD THE FDI POLICY

  • Filing of Application
Proposal for foreign investment, along with supporting documents to be filed with proper documentations, check sector wise requirement.

  1. Internal Procedure for Approvals 
  2. DPIIT will identify the concerned Ministry/ Department and thereafter, circulate the proposal within 2 days.
  3. In addition, once the proposal is received, the same would also be circulated online to the RBI within 2 days for comments from FEMA perspective.
  4. Proposed investments from Pakistan and Bangladesh would also require clearance from the Ministry of Home Affairs.
  5. DPIIT would be required to provide its comments within 4 weeks from receipt of an online application, & Ministry of Home Affairs (if applicable) to provide comments within 6 weeks.
  6. Pursuant to the above, additional information/ clarifications may be asked from the applicant which is to be provided within 1 week.
  7. Proposals involving FDI exceeding INR 50bn (approx. $ 775 mn) shall be placed before the Cabinet Committee of Economic Affairs.
 
  • Final Approval

Once the proposal is complete in all respects, the same gets approved within 8-10 weeks depends upon the fulfil critarias and requirements.

  • CS Certificate
  • Declaration by the Authorised Representative of the Indian Company/LLP
  • Pre and post shareholding pattern in the Indian company
  • Copy of government approval (if applicable)
  • Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
  • RBI approval on the amount of refund with respect to the amount of the issue (if applicable)
  • Valuation certificate
  • Approval letter (if non-compliant with the guidelines – if applicable)
  • Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
  • FIRC/ Debit statement
  • Know Your Customer (KYC)
  • Board Resolution

  • Lottery Business including Government/private lottery, online lotteries, etc.*

  •  

    Gambling and Betting including casinos*

  •  

    Chit Funds

  •  

    Nidhi Company

  •  

    Trading in Transferable Development Rights (TDR)

  •  

    Real Estate Business or Construction of farm houses**

  •  

    Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes

  •  

    Sectors not open to private sector investment- atomic energy, railway operations (other than permitted activities mentioned under the Consolidated FDI policy)