Gradually, India is turning into an open economy. India is the fourth favourite destination for foreign investment, withstanding the US, China, and Britain. India is a country where there is the availability of cheap and quality resources, unexplored markets, and stable economic policies. All these and the lucrative offers made by the government attracts lots of foreign investments.
FDI has a direct bearing on the growth of the Indian economy. The country has been experiencing strong financial stability as well as steep economic growth.
Now, how does FDI help in the betterment of a country? The methods of FDI help in creating employment opportunities, developing infrastructures, creating linkages in domestic firms, producing revenues in the form of taxes, and so on.
Financial and technical collaborations, joint ventures, and capital markets all are different forms of FDI that help in boosting the economy. There are certain criteria different countries need to follow. The approval of RBI and FIPB is necessary for investment in sectors like the manufacture of tobaccos and cigarettes, defence equipment, etc.
There are two methods of FDI by which investors can invest in India.
As per the analysis by FDI India, NRIs, QFIs, and foreign institutional investors get permission to invest in India.
