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FDI in India

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Sunanda K. Chavan
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FDI in India - October 11th, 2010

FDI in India


India, the 4th largest economy in the world is undoubtedly one of the most preferred destinations for foreign direct investments (FDI) as India has proven its caliber in the field of information technology and a host of other significant arenas such as auto-components, chemicals, apparels, pharmaceuticals and jewellery where it can match the best in the world.
India as a country was always promising for global investors but its rigid FDI policies was a big hindrance in this regard.

But as a result of a series of ambitious and positive economic reforms aimed at deregulating the economy and stimulating foreign investment, India has positioned itself as one of the front runners of the rapidly growing Asia Pacific Region.
The latent strength of India has made it one of the most exciting emerging markets in the world.

The strength of India is its skilled managerial and technical manpower that matches the best available in the world. The size of middle class population, a vital part of India, exceeds the population of the USA or the European Union so it provides India with a distinct cutting edge in global competition.

Apart from that India’s time tested institutions offer foreign investors a transparent environment that guarantees the security of their long term investments in this promising land.


India’s liberalized economy was a big boon for investors as the updated FDI policy allows a 100% FDI stake in a venture in few sectors. The industrial sector was among the first sectors to be liberalized in India in a series of measures.

The industrial policy reforms have substantially reduced the industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI. These factors make India one of the hottest destinations for FDI investment across the globe.
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