Foreign Direct Investment (FDI)

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The report titled ‘Vision—Developed India: Opportunities and Expectations of MNCs’, added that 71% of MNCs working in India consider the country an important destination for their global expansion. The optimism is driven by both short-term as well as long-term prospects.
FDI in India has seen a consistent rise in the last decade, with FY 2021-22 receiving FDI inflow of $84.8 billion despite the impact of the COVID-19 pandemic and geopolitical developments on investment sentiment.
India is seen as an emerging manufacturing hub in global value chains, as a growing consumer market and as a hub for ongoing digital transformation.
Over 60% of MNCs in the report stated improvement in the business environment in the last three years.
According to the survey, top expectations from the government include enhanced effectiveness of the national single window for approval / clearances; greater tax certainty, and stronger contract enforcement mechanism, among other measures.

Foreign direct investment (FDI) is an investment from a party in one country into a business or corporation in another country with the intention of establishing a lasting interest.
With FDI, foreign companies are directly involved with day-to-day operations in the other country.
FDI enters in India through either of the two routes:
- Automatic route
  - The non-resident or Indian company does not require prior nod of the RBI or government of India for FDI.
- Government-approval route
  - The government’s approval is mandatory and the company will have to file an application through Foreign Investment Facilitation Portal.