FDI in India
Since the liberalization of the Indian Economy in 1991, the Department of Industry Policy & Promotion (DIPP) formulates the policy of Foreign Direct Investment (FDI) in India. On a year-over-year basis, DIPP uses to formulate and revise its policies to bring reform and ease of doing business with less compliance.
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Foreign Direct Investment (FDI) in India, FDI policies and investment opportunity
Foreign Direct Investment (FDI) in India can be done through foreign investors on their own or can be done through Joint Ventures. There are two types of approval of Foreign investment, Automatic Route and Approval Route. Most of the sectors have FDI policy through the automatic route, it means that filing and intimating the Government regarding FDI details will serve the purpose and fulfill regulatory compliance. There are a total of eleven sectors that require Government approval for Foreign Investment in them, these are Mining, Defence, Broadcasting, Print Media, Civil Aviation, Satellites, Telecom, Private Security Agencies, Trading of food products, Financial Services and Pharmaceuticals. The new FDI policy is more liberalized and it does not restrict the market. All FDI whether through an automatic route or through the approval route is scrutinized by the Ministry of Commerce and Industry.
Under the ‘Make in India’ initiative Foreign Direct Investment norms are further relaxed and 25 sectors were released with more relaxed norms for FDI, this brings the opportunity to invest in India.
For ease and convenience for Foreign Investors to invest in India, Department for promotion of Industry and Internal Trade (DPIIT) has provided an online portal called FIFP (Foreign Investment Facilitation Portal), through the portal of FIFP any foreign investor can submit any FDI application or proposal. DIPP portal can be accessed on www.dipp.gov.in and Foreign investment facilitation portal can be accessed online on www.fifp.gov.in
There is a proper Standard Operating Procedure (SoP) in place prepared by DIPP for processing of Foreign Direct Investment Proposals and to ensure consistency of treatment and uniformity across various sectors. The SoP contains requirement of processing the FDI applications in a time-bound manner. All FDI application which requires approval of Government need to be filed online on FIFP Portal. The SoP for processing of FDI application also applies on application filed on FIFP Portal.
After SOP is in place, all applications filed need to be processed within 8 to 10 weeks from the date of filing application online. Competent Authorities use to conduct monthly review of all application proposal pending. Further DIPP also conduct quarterly review of all application proposal pending.
Further, to establish the quick connection as per the country-wise, the Government of India vide its portal www.investindia.gov.in has provided various resources and country-wise desk for ten countries, these are United Kingdom (UK), United States (US), Taiwan, Russia, Korea, Japan, Israel, Germany, France, and China. This Government portal also provides insights on investment opportunities in the various sector according to various states in India.
As an initiative to create more investment in India Government of India uses to showcase recent opportunities on its platform www.indiainvestmentgrid.gov.in, in this initiative Government of India proposes to invest in stressed assets to make disproportionate gains through investing under insolvency and bankruptcy code 2016.
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