India, the largest democracy in the world, is also the second fastest growing economy today. It has witnessed a paradigm shift clocking over 8% average growth during the last 5-6 years. Since the initiation of liberalization measures in 1991,there has been a constant effort to make India an attractive destination for foreign investment and simplify the procedures for the investor. Today Foreign Direct Investment (FDI) is allowed almost in all sectors and in most of the cases, through the automatic route. India has received more than US$ 150 billion worth of FDI since 1991.
Globally, India is one of the most preferred destinations for foreign investment, however due to the heterogeneous nature of the Indian market, investors do find difficulty in finding clear answers to queries and also delays in getting their investments to fructify speedily.
It is the intent and objective of the Government of India to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills, for accelerated economic growth. Foreign Direct Investment, as distinguished from portfolio investment, has the connotation of establishing a lasting interest' in an enterprise that is resident in an economy other than that of the investor.
The new Government has prepared a five-pillar strategy to drive India's growth, which offer multiple avenues of collaboration and investments:
Both "Make in India" and "Invest India" shall act as first reference points for investors. They shall also be a facilitator and partner offering handholding services to the investors to keep them to speedily fructify their investment plans.
To access the latest version of India's Consolidated FDI Policy Circular as well as detailed FDI statistics please visit this link under the website of the Department of Industrial Policy and Promotion.
Moreover, the government of India has created The Overseas Indian Facilitation Centre (OIFC), the Diaspora economic engagement arm of the Ministry of Overseas Indian Affairs (MOIA) to brigde the gap of investments between India and its diaspora. More information about the OIFC can be found under http://www.oifc.in