Foreign Direct Investment in India

Description: Foreign Direct Investment (FDI) in India

India has become a global resource for the various manufacturing and services industry.

The sole and huge geography of India gifted with a different topography, has made India one of the most attractive foreign direct investment destinations in the World.

1. With the largest area of arable land, India is one of the largest food producers in the World.
2. India is the largest milk, sugar-cane, and tea manufacturer as well as the second largest rice, fruit, and vegetables manufacturer.
3. The pool of technical human resources of India with an increasing disposable revenue and its burgeoning market have all combined to enable India to emerge as a viable partner to the global industry.
4. India is the preferred hotspot for organisations keen to outsource their activities, software development work, customer contact centres or Information Technology enabled business process.
5. Top sectors attracting the highest Foreign direct investment inflows into India are electrical equipment, services sector (financial and non-financial), telecommunications, transport industry (Asia-Africa Growth Corridor), fuels, chemicals, construction activities, drugs and pharmaceuticals, food processing, cement, and gypsum product.
6. Huge investment potential exists in the upcoming Knowledge Process Outsourcing sector and real estate industry.
7. Thus, India is one of the few markets in the World, which offers high forecasts for economic growth and earning potential in practically all fields of business, especially in tourism, information technology, and agricultural sector.
8. New Delhi, Mumbai, Bangalore, Gujarat, Andhra Pradesh, and Chennai are the main destination for the foreign direct investment (FDI) inflow.
9. Maharashtra and the National Capital Region accounted for more 50% of the foreign direct investment (FDI) inflows into India.
10. Foreign direct investment (FDI) is welcome in nearly all the areas, excluding those of strategic concern (for instance, defense and atomic energy)
11. The Indian Government has recently passed a Special Economic Zones Bill.
12. All Intellectual Property Rights (IPR) laws are TRIPS (Trade-Related Aspects of Intellectual Property Rights) compliant with a completely functional Intellectual Property Appellate Tribunal.

To promote the investment flows into India, the Government of India has set up several investment Facilitation agencies, which include:

1. Foreign Direct Investment Promotion Board
2. Foreign Direct Investment Implementation Authority
3. Investment Commission
4. Secretariat for Industrial Assistance
5. Indian Brand Equity Foundation

Sectors, where Foreign direct investment (FDI) is not allowed, are limited to the Rail transport, Atomic Energy and Atomic Minerals, Postal Service, Gambling and Betting, Lottery, and basic agriculture or plantations.

Logistics Corridors

1. Asia-Africa Growth Corridor
2. India-Chabahar (Iran)-Afghanistan Economic Corridor
3. International Transport and Transit Corridor of the Ashgabat Agreement
4. Bangladesh-China-India-Myanmar Economic Corridor
5. International North-South Transport Corridor (India-Russia)
6. Access to the:
   1. China-Pakistan Economic Corridor
   2. Islamabad-Tehran-Istanbul Rail and Road Corridor (ITI-ECO)
   3. Trans-Caspian Trade and Transit Corridor (Central Corridor)