What is Foreign Direct Investment?

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The Foreign Direct Investment into India is continuously increasing since 2014-15. In the last seven financial years, over 443 US billion dollars’ worth of FDI inflows have come into the country.

About Foreign Direct Investment:

  • 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.


Q1) What is Foreign Investment Facilitation portal?

The Foreign Investment Facilitation Portal (FIFP) is the new online single point interface of the Government of India for investors to facilitate Foreign Direct Investment. It is administered by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry and will continue to facilitate the single window clearance of applications which are through approval route.

Source: All India Radio