FACILITATING FOREIGN DIRECT INVESTMENTS IN INDIAN BUSINESS AND INDUSTRY
For Foreign Direct Investors Looking To Invest In India
For Foreign Direct Investors Looking To Invest In India
For Foreign Direct Investors Looking To Invest In India
THINKING OF INVESTING IN THE WORLD'S FASTEST GROWING ECONOMY? TRUST FDI MANAGER TO PROVIDE A COMPLETE BESPOKE SOLUTION.
The newly elected Indian government is examining India’s foreign direct investment policy to look for new areas that can be opened to overseas investors and sectors that still face hurdles despite being on the automatic route. This is an exciting time to invest in India.
For Indian Project Promoters Seeking FDI Partners
For Foreign Direct Investors Looking To Invest In India
For Foreign Direct Investors Looking To Invest In India
ARE YOU SEEKING FOREIGN DIRECT INVETMENT FOR YOUR PROJECT IN INDIA ? FDI MANAGER HEPLS YOU ACCESS FDI INVESTORS IN YOUR BUSINESS SECTOR.
If you are a project owner in India, looking for Foreign Direct Investment into your project, you have arrived at your dream destination. Just register your project with us straightaway and let the expe
ARE YOU SEEKING FOREIGN DIRECT INVETMENT FOR YOUR PROJECT IN INDIA ? FDI MANAGER HEPLS YOU ACCESS FDI INVESTORS IN YOUR BUSINESS SECTOR.
If you are a project owner in India, looking for Foreign Direct Investment into your project, you have arrived at your dream destination. Just register your project with us straightaway and let the experts at FDI Manager take over from there and do the needful.
For Experts From Various Fields Who Understand FDI
For Foreign Direct Investors Looking To Invest In India
For Experts From Various Fields Who Understand FDI
JOIN OUR EXPERT PANEL OF CONSULTANTS. WE VALUE YOUR EXPERTISE AND PAY YOU WELL FOR YOUR GROUND BREAKING CONTRIBUTION TO FDI.
This is a huge opportunity for professionals in their capacity as either individuals or organizations to be an empanelled consultant for FDI Manager. Lawyers, Retired Bureaucrats, Health Practitioners, Engineers, Management Consultants, and many more...
WHO IS FDI MANAGER?
Expert Foreign Direct Investment Consultants
FDI Manager consists of a team of expert FDI consultants focused primarily into the growing Indian economy poised for a phenomenal growth in the coming years and decades. It has long years of combined relevant experience helping clients prepare for the unknown while meeting their financial goals. Ask us about:
- Government Policy
- Industry Data & Projections
- Sector specific Growth Potential
- Sourcing Project Finance
- Statutory Requirements
- Joint Venture Opportunities
- Mergers and Acquisitions
As an independent financial services firm, we can access many different products so you can get the right products and services.
Comprehensive Approach
FDI Manager assists clients setting up business in India and provides complete support services to achieve their business objectives. Whether a startup or an individual investor or a corporate, FDI Manager helps initiate their investment journeys in India. The efficient services, expert guidance and assistance provided by FDI Manager ensure clients benefit the maximum out of their foreign direct investments in India. FDI Manager provides all necessary support to foreign investors looking to start or expand their business in India. FDI Manager services include:
- Policy and Incentives Advisory
- Legal , Licenses and compliance advisory
- Market Entry and Expansion Advisory
- Setting up Subsidiary Branch or Project Office
- Banking & Financial Support Services
- HR Support Services
- Joint Ventures & Partnering
- Mergers & Acquisitions
- Company Incorporation & Corporate Secretarial Services
- Market Research & Project Reports
Partnering Indian Businesses & Project Owners
FDI Manager provides a massive window of opportunity to Indian companies and project owners who want to benefit directly from Foreign Direct Investments. By highlighting and showcasing their projects and services on this Foreign Direct Investments Platform, FDI Manager not only generates investor interest across the globe but also follows up with potential investors for successfully setting up Joint Ventures in India.
Backed by immense consulting expertise and single point dispensing of support services, FDI Manager is uniquely placed to service its clients. If you have a project or services that seek Foreign Direct Investments, then FDI Manager is your correct destination.
FDI IN INDIA
Overview & Scope
Foreign direct investment equity inflows into India crossed the $500 billion milestone between April 2000 to September 2020, strengthening the country’s credentials as an investment destination. According to data released by the Department for Promotion of Industry and Internal Trade, the inflows during the period stood at $500.12 billion. About 29% of the FDI came through the Mauritius route. It was followed by Singapore (21%), the U.S., the Netherlands, Japan (each 7%), and the U.K. (6%).
India received $144.71 billion from Mauritius and about $106 billion from Singapore during the period under review.
The other big investors have been from Germany, Cyprus, France and Cayman Islands. Since 2015-16, FDI inflows have been recording significant growth. In that fiscal, the country received $40 billion FDI, an increase of 35% over the previous year. In 2016-17, 2017-18, 2018-19 and 2019-20, the investments stood at $43.5 billion, $44.85 billion, $44.37 billion and $50 billion, respectively. The key sectors which attracted the maximum of these inflows include services segment, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.
This growth is a strong reflection of the market potential of India coupled with the steady state of market reforms that India has undertaken since 2000, including opening up of various sectors of the economy to 100% FDI over the last 5 years.
THE SCOPE FOR FDI IN INDIA
According to Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflow in India stood at US$ 500.12 billion between April 2000 and September 2020, indicating that Government's effort to improve ease of doing business and relaxing FDI norms has yield results.
FDI equity inflows in India stood at US$ 30.0 billion in 2020-21 (between April 2020 and September 2020). Data for 2020-21 indicates that computer software and hardware sector attracted the highest FDI equity inflows of US$ 17.55 billion, followed by the service sector at US$ 2.25 billion, trading at US$ 949 million and chemicals (other than fertilisers) at US$ 437 million.
In 2020-21 (between April 2020 and September 2020), India received the maximum FDI equity inflows from Singapore (US$ 8.30 billion), followed by the US (US$ 7.12 billion), Cayman Islands (US$ 2.10 billion), Mauritius (US$ 2.0 billion), the Netherlands (US$ 1.49 billion) and the UK (US$ 1.35 billion).
In 2020-21 (between April 2020 and September 2020), Gujarat received the maximum FDI equity inflows of US$ 16.0 billion, followed by Maharashtra at US$ 3.61 billion, Karnataka at US$ 3.66 billion and Delhi at US$ 2.66 billion.
RECENT FOREIGN DIRECT INVESTMENT MILESTONES
Some of the significant FDI announcements made recently are as follows:
- In the second quarter of FY21, total FDI inflows amounted to US$ 28.10 billion, of which equity inflows were US$ 23.44 billion. This boosted FDI equity inflows to US$ 30 billion between April 2020 and September 2020, a 15% increase on y-o-y basis compared with the same period in FY20.
- In November 2020, Rs. 2,480 crore (US$ 337.53 million) foreign direct investment (FDI) in ATC Telecom Infra Pvt Ltd. was approved by the Union Cabinet.
- In November 2020, Amazon Web Services (AWS) announced to invest US$ 2.77 billion (Rs. 20,761 crore) in Telangana to set up multiple data centres; this is the largest FDI in the history of the state.
- Since April 2020, the government has received over 120 foreign direct investment (FDI) proposals worth ~Rs. 12,000 crore (US$ 1.63 billion) from China. Between April 2000 and September 2020, India received US$ 2.43 billion FDI from China.
- According to data provided by Reserve Bank of India (RBI), India’s Outward Foreign Direct Investment (OFDI) in equity, loan and guaranteed issue stood at ~US$ 1.06 billion in November 2020 vs. US$ 3.51 billion in October 2020.
GOVERNMENT INITIATIVES
In December 2020, the government of Uttar Pradesh agreed to provide Samsung Display Noida Private Limited with special incentives to set up a mobile and IT display product manufacturing unit. Under the Central Government's scheme for promotion of manufacturing electronic components and semiconductors (SPECS), Samsung will also receive a financial incentive of Rs. 460 crore (US$ 62.61 million). This project will develop a global export hub in Uttar Pradesh and will help the state attract more foreign direct investments (FDI).
In December 2020, changes in the guidelines for the provision of Direct-to-Home (DTH) services have been approved by the Union Cabinet, enabling 100% FDI in the DTH broadcasting services market.
In October 2020, 16 qualifying applicants under the PLI scheme were approved by the Ministry of Electronics and Information Technology (MeitY). For five years, subsequent to the base year (FY2019-20), the PLI for large-scale electronics production will extend an incentive of 4-6% on the incremental sales of products manufactured in India to the qualifying firms. Samsung, Foxconn, Rising Star, Wistron and Pegatron are the foreign mobile phone manufacturing companies that have been approved in the mobile phone market.
Under Magnetic Maharashtra 2.0, the state implemented core investment promotion recovery initiatives such as Plug & Play Infrastructure, Maha Jobs, Maha Parwana, Investor First Programme, Capacity Augmentation of MIDC Land Banks and Dedicated Country Desks. This accelerated the economic growth and improved consumer trust, placing the state as one of the country's most preferred investment destinations, flourishing the state's industrial sector.
SALIENT FEATURES
(1) FDI up to 100 per cent is allowed under the automatic route in all activities/sectors except the following, which will require approval of the Government:
(a) Activities/items that require an Industrial Licence;
(b) Proposals in which the foreign collaborator has a previous/existing venture/tie up in India in the same or allied field.
(c) All proposals relating to acquisition of shares in an existing Indian company by a foreign/NRI investor.
(d) All proposals falling outside notified sectoral policy/caps or under sectors in which FDI is not permitted.
(2) FDI in areas of special economic activity:
(a) Special Economic Zones:
100 per cent FDI is permitted under automatic route for setting up of Special Economic Zone. Units in SEZ qualify for approval through automatic route subject to sectoral norms. Details about the type of activities permitted are available in the Foreign Trade Policy issued by the Department of Commerce. Proposals not covered under the automatic route require approval by FIPB.
(b) Export Oriented Units (EOUs):
100 per cent FDI is permitted under automatic route for setting up 100 per cent EOU, subject to sectoral norms. Proposals, which are not covered under the automatic route would be considered and approved by FIPB.
(c) Industrial Park:
100 per cent FDI is permitted under automatic route for setting up of the Industrial Park. Electronic Hardware Technology Park (EHTP) Units All proposals for FDI/NRI investment in EHTP Units are eligible for approval under the automatic route subject to the parameters listed. For proposals not covered under automatic route, the applicant should seek separate approval of the FIPB, as per the procedure outlined in the policy.
(d) Software Technology Park Units:
All proposals for FDI/NRI investment in STP Units are eligible for approval under automatic route subject to parameters listed. For proposals not covered under automatic route, the applicant should seek separate approval of the FIPB, as per the procedure outlined in the policy.
INDIAN GOVERNMENT INITIATIVES
As of February 2019, the Government of India is working on a road map to achieve its goal of US$ 100 billion worth of FDI inflows.
In February 2019, the Government of India released the Draft National e-Commerce Policy which encourages FDI in the marketplace model of e-commerce. Further, it states that the FDI policy for e-commerce sector has been developed to ensure a level playing field for all participants.
Government of India is planning to consider 100 per cent FDI in Insurance intermediaries in India to give a boost to the sector and attracting more funds.
In December 2018, the Government of India revised FDI rules related to e-commerce. As per the rules 100 per cent FDI is allowed in the marketplace based model of e-commerce. Also, sales of any vendor through an e-commerce marketplace entity or its group companies have been limited to 25 per cent of the total sales of such vendor.
In September 2018, the Government of India released the National Digital Communications Policy, 2018 which envisages increasing FDI inflows in the telecommunications sector to US$ 100 billion by 2022.
In January 2018, Government of India allowed foreign airlines to invest in Air India up to 49 per cent with government approval. The investment cannot exceed 49 per cent directly or indirectly.
No government approval will be required for FDI up to an extent of 100 per cent in Real Estate Broking Services.
In September 2017, the Government of India asked the states to focus on strengthening single window clearance system for fast-tracking approval processes, in order to increase Japanese investments in India.
The Ministry of Commerce and Industry, Government of India has eased the approval mechanism for foreign direct investment (FDI) proposals by doing away with the approval of Department of Revenue and mandating clearance of all proposals requiring approval within 10 weeks after the receipt of application.
The Government of India is in talks with stakeholders to further ease foreign direct investment (FDI) in defence under the automatic route to 51 per cent from the current 49 per cent, in order to give a boost to the Make in India initiative and to generate employment.
In January 2018, Government of India allowed 100 per cent FDI in single brand retail through automatic route.
Road ahead
India has become the most attractive emerging market for global partners (GP) investment for the coming 12 months, as per a recent market attractiveness survey conducted by Emerging Market Private Equity Association (EMPEA).
Annual FDI inflows in the country are expected to rise to US$ 75 billion over the next five years, as per a report by UBS.
The Government of India is aiming to achieve US$ 100 billion worth of FDI inflows in the next two years.
The World Bank has stated that private investments in India is expected to grow by 8.8 per cent in FY 2018-19 to overtake private consumption growth of 7.4 per cent, and thereby drive the growth in India's gross domestic product (GDP) in FY 2018-19.
SEE THE LATEST FDI POLICY INITIATIVE BY THE GOVERNMENT OF INDIA
Foreign Direct Investments Into India - FDI Manager