Greenfield Investment
This type involves setting up entirely new operations in the host country. For example, building factories or facilities from scratch.
An initiative to build an Atmanirbhar Bharat
Foreign Direct Investment (FDI) involves foreign entities investing in businesses or assets, bringing in capital and management control. It bridges the gap between domestic savings and investment needs, boosting infrastructure, job creation, and technology.
India, with its strong economy, large workforce, and favourable policies, has become a leading FDI destination. Key sectors like manufacturing, telecom, and IT have experienced substantial growth thanks to FDI.
FDI in India not only contributes to economic growth but also helps in creating a more competitive business environment. By attracting global players, it encourages innovation and improves the quality of products and services.
To enhance highway travel comfort, the government is developing modern Wayside Amenities (WSAs) every 40 km along National Highways under the PPP model. 198 WSAs have been awarded, 162 are under bidding, and 1,000+ are planned by 2024-25. These hubs will support travelers, generate local jobs, and create strong opportunities for businesses and investors.
| Period | INR (₹ Crore) | USD (Billion) |
|---|---|---|
| Cumulative (2000-2024) | ₹89,85,900 | $1.05 Trillion |
| Apr-Dec 2024 | ₹3,40,962 | $40.67 Billion |
| H1 FY25 | ₹2,58,873 | $29.80 Billion |
Major contributors to India's FDI inflows.
IT and manufacturing lead the way, while green energy is a rising star.
Tier-2 and Tier-3 cities are now attracting FDI due to lower costs and untapped markets.
Foreign investments boost agriculture via precision tech, high-yield seeds, and better supply chains; allied sectors thrive.
India is one of the largest automobile markets globally, with significant investments in electric and self-driving vehicles.
India's aviation sector is growing rapidly with increased connectivity and investments in modern airports.
Traditional medicine is gaining global recognition, attracting investments in herbal products and wellness centers.
India's electronic market grows rapidly, driven by rising demand for consumer electronics and diverse industrial applications
India's construction sector is booming with a focus on smart cities, affordable housing, and sustainable infrastructure.
India is emerging as a global hub for defence manufacturing, with initiatives like Make in India promoting self-reliance.
Investments in EdTech and digital learning platforms are transforming the education sector in India.
Electric mobility is revolutionizing India's transportation sector, with investments in EV manufacturing and infrastructure.
India's electronic components industry flourishes with the PLI scheme and government backing.
India is becoming a key player in the global electronics supply chain with significant investments in this sector.
India's electronic market grows rapidly, driven by rising demand for consumer electronics and diverse industrial applications.
India's food processing industry is growing rapidly, with a focus on value-added products and exports.
Healthcare is evolving with major investments in telemedicine and health tech, enhancing patient care and access.
India remains a global leader in IT services and BPM, driven by innovation and digital transformation.
The leather and footwear industry in India is evolving with a focus on exports and sustainable practices.
India's media and entertainment sector is expanding rapidly, driven by digital consumption and new-age platforms.
The medical devices sector in India is growing significantly, with a focus on innovation and import substitution.
India's metals and mining sector is crucial to its economy, with growing investments in sustainable mining practices.
India's oil and gas sector is diversifying with a focus on renewable energy and reducing carbon emissions.
India is modernizing its ports and shipping infrastructure to boost trade and maritime efficiency.
Indian Railways is undergoing modernization with investments in high-speed rail, electrification, and smart technologies.
India's real estate sector is growing, driven by urbanization and infrastructure development.
India is a global leader in renewable energy, with significant investments in solar, wind, and hydropower projects.
The retail and e-commerce sectors in India are expanding rapidly, driven by digital transformation and consumer demand.
India is emerging as a hub for semiconductor manufacturing and IT hardware production.
India's space sector is advancing with investments in satellite technology and private-sector collaboration.
India's telecom sector is at the forefront of 5G adoption and digital connectivity.
India's thermal power sector is focusing on efficiency and transitioning to cleaner technologies.
India is a popular tourist destination, with investments focusing on infrastructure and eco-tourism.
Streamlined reforms and liberalized FDI policies reduce bureaucratic hurdles while creating an investor-friendly environment. Simplified approval processes build strong investor confidence.
The campaign drives modern manufacturing and infrastructure upgrades while cutting red tape. Attractive fiscal incentives stimulate both domestic and global investments.
Enhanced regulatory measures improve international competitiveness and spur cross-border investments. Diverse FDI inflows span IT, telecom, manufacturing, and infrastructure sectors.
Policies now permit 100% FDI in key sectors and gradually lift sector-specific limits. Eased norms in areas like pharmaceuticals and renewable energy encourage broader investment.
Digital platforms streamline investment approvals with single-window systems that cut delays. They simplify compliance and accelerate global investors market entry.
Reduced corporate tax rates and GST reforms create a competitive business climate. Simplified regulatory processes boost India's global ease-of-doing-business ranking.
Targeted reforms in defence, space, manufacturing, and renewable energy foster innovation. These focused policies attract specialized and strategic global investments.
Modern infrastructure projects supported by investor-friendly policies drive economic growth. Digital innovations and smart manufacturing further enhance growth potential.
Clear regulatory measures and a competitive labor market create a secure investment climate. Continuous skill development initiatives add value to India's investment proposition.
| Metric | Value | Comments |
|---|---|---|
| Cumulative FDI (Apr 2000 - Dec 2024) | ~Rs. 89,85,900 crore (US$ 1.05 trillion) | Long-term accumulation |
| FDI Equity Inflow (Apr-Dec 2024) | Rs. 3,40,962 crore (US$ 40.67 billion) | 27% growth over previous period |
| FDI Equity Inflow (H1 FY25) | Rs. 2,58,873 crore (US$ 29.8 billion) | Nearly 26% increase YoY |
| Service Sector FDI | Rs. 998,890 crore (US$ 116.72 billion) | Largest share (16.2%) |
| IT Sector FDI | Rs. 927,687 crore (US$ 108.40 billion) | Approx. 15% of total |
| Trading FDI | Rs. 3,99,659 crore (US$ 46.7 billion) | About 6.4% |
| Telecom FDI | Rs. 3,42,320 crore (US$ 40 billion) | Roughly 5.5% |
| Automobile FDI | Rs. 3,20,925 crore (US$ 37.5 billion) | Around 5.2% |
| Major FDI Sources (by % share) | Mauritius: 24.8%; Singapore: 23.8%; USA: 9.5%; Netherlands: 7.3%; Japan: 6% | Diversified global investment |
| Annual FDI Target | US$ 100 billion (projected) | Future goal to enhance inflows |
The government has implemented a range of initiatives to boost the attractiveness of India as an investment destination:
Launched to transform India into a global manufacturing hub, this flagship initiative focuses on improving ease of doing business, developing world-class infrastructure, and attracting strategic foreign partners.
Covering 14 key sectors-including electronics, pharmaceuticals, automobiles, textiles, and food processing-PLI has mobilized over ₹1.46 lakh crore in committed investments, generated production worth ₹12.5 lakh crore, and driven ₹4 lakh crore in exports, while creating approximately 9.5 lakh jobs.
Continuous updates to FDI norms-such as raising sectoral caps in defence, insurance, and manufacturing-have expanded investment opportunities.
Focused reforms have been introduced in critical sectors:
Liberalized norms now allow up to 100% FDI in specified sub-sectors of defence and space, attracting advanced global technologies and fostering innovation in these high-tech industries.
Increases in FDI limits-from 26% to as high as 74% or more-have encouraged substantial foreign capital in these sectors.
Key infrastructure initiatives, such as national highways and renewable energy projects, have received strong backing through both government funding and foreign investment.
Regulatory relaxations and supportive fiscal policies have led to significant FDI inflows, modernizing these sectors and driving digital transformation.
The government and financial regulators have introduced measures that facilitate investor inflows:
Exemption of FCNR(B)/NRE deposits from CRR/SLR maintenance (since July 6, 2022) has enhanced liquidity in the banking system and encouraged foreign currency inflows
New FPI "Beneficial Owner" norms require detailed upstream ownership disclosure, improving market transparency and compliance
Corporate tax rates were cut to 22 % for existing companies and 15 % for new manufacturing entities via the Taxation Laws (Amendment) Ordinance 2019, boosting post-tax returns.
Since July 1, 2017, the unified Goods and Services Tax has eliminated cascading levies and simplified compliance, indirectly enhancing FDI attractiveness by streamlining the indirect tax regime.
The RBI's External Commercial Borrowings framework now allows infrastructure projects to raise up to $750 million per financial year with extended all-in-cost ceilings (up to 6.5% for 10-year tenors), broadening foreign financing channels.
FDI is broadly classified into:
This type involves setting up entirely new operations in the host country. For example, building factories or facilities from scratch.
Here, foreign entities acquire or lease existing businesses in the host country. This is often seen in sectors like real estate and manufacturing.
Partnerships between foreign investors and domestic businesses where resources and responsibilities are shared.
When a foreign entity acquires an existing company in the host country.
Domestic investments form a complementary base to FDI and are critical to the country's economic resilience:
Domestic investments come from public sector projects, private capital, and household investments. Increased domestic capital formation supports market liquidity and investor confidence.
Domestic Institutional Investors (DIIs) such as mutual funds, insurance companies, and banks have been instrumental in driving market growth.
The surge in IPOs-around 240 SME companies went public in 2024-along with vibrant VC and private equity activity, indicates a maturing investment ecosystem.
Key market indicators reflect the strength of India's investment ecosystem:
As of January 2025, India's National Stock Exchange (NSE) boasts one of the world's largest market capitalizations, with a total value of approximately Rs. 419.09 lakh crore (US$ 4.84 trillion).
India's GDP continues to grow robustly, supported by strong exports and high domestic consumption. For example, Q2 FY25 estimates indicate nominal GDP of around Rs. 76.60 lakh crore (US$ 886.16 billion), reflecting stable economic fundamentals and investor optimism.
There has been a notable rise in the number of registered investors on major exchanges, highlighting growing public and institutional interest in the market.
| Aspect | FDI | Domestic Investment |
|---|---|---|
| 1. Capital Source | Foreign equity, reinvested earnings, intra-company loans | Local savings, bank credit, government budgets |
| 2. Ownership & Control | Requires lasting management stake (≥ 10%) | Often passive (bonds, minority equity) without control changes |
| 3. Investment Horizon | Long-term commitment | Can be short- or long-term, tied to domestic cycles |
| 4. Technology Transfer | Direct transfer of advanced tech and best practices | Gradual upgrades via local R&D and imports |
| 5. Sector Focus | Concentrated in high-growth sectors (IT, services, Mfg.) | Broad spread across infrastructure, housing, inventory |
| 6. Risk Exposure | Currency, political, and cross-border risks | Domestic policy and market-cycle risks |
| 7. Profit Repatriation | Can be sent back to investor's home country | Profits stay local for reinvestment or taxation |
| 8. Regulatory Process | Subject to FDI approvals, sector caps, special clearances | Governed by standard domestic licensing and compliance |
| 9. Balance-of-Payments | Recorded in capital account, boosts foreign reserves | Reflected in GDP's investment component |
| 10. Growth Spillovers | Spurs supplier development, export linkages | Builds foundational capacity that attracts further FDI |
According to DPIIT data, as reported in various financial and economic publications, the fiscal year 2024 (FY24) saw total FDI equity inflows of $44.42 billion. The top source countries, based on equity inflows, were identified as follows:
| Rank | Country | FDI Equity Inflow (USD Billion) | Percentage of Total (%) |
|---|---|---|---|
| 1 | Singapore | 11.77 | 26.5 |
| 2 | Mauritius | 7.97 | 17.9 |
| 3 | United States | 4.99 | 11.2 |
| 4 | Netherlands | 4.93 | 11.1 |
| 5 | Japan | 3.17 | 7.1 |
FDI serves as a catalyst for India's economic development by contributing to:
The Indian government aims to attract at least US$ 100 billion annually in gross FDI inflows, reflecting its long-term strategy to build a globally competitive economy.
Future growth is expected to be driven by investments in high-potential sectors such as renewable energy, defence and aerospace, digital and IT services, and advanced manufacturing.
Through continuous regulatory reforms and improvements in ease-of-doing-business rankings, India is positioned to boost investor confidence, ensuring sustained foreign capital inflows.
The synergy between domestic investments and FDI is vital for sustaining long-term growth. Strong public investment in infrastructure and supportive private capital formation lead to enhanced market liquidity and overall economic stability.
Efforts to streamline domestic investment channels, improve institutional frameworks, and reduce administrative delays further complement FDI inflows, creating a robust, self-reinforcing cycle of growth.
With the ongoing economic reforms and liberalization measures, projections indicate that FDI inflows will continue to grow. Increased global competitiveness, technological advancements, and a favourable regulatory environment are expected to attract higher volumes of foreign capital.
The recent surge in FPI participation and record investment inflows in the capital markets suggest a positive outlook for both domestic and foreign investments, reinforcing India's position as an emerging investment hub.
Innovations in digital technology and the rapid adoption of advanced manufacturing processes are set to drive further improvements in productivity, ultimately attracting more FDI by showcasing India’s capacity for cutting-edge innovation.
Investing in India involves the following steps:
At Sarkari Kaam, we make compliance effortless for you!
Foreign contributions are a vital source of funding for large-scale social and environmental initiatives in India. Under the Foreign Contribution Regulation Act (FCRA), 2010, organizations can accept donations from overseas, subject to registration and compliance requirements administered by the Ministry of Home Affairs (MHA).
Minimum ₹100 Cr donation is only applicable for NGOs with valid FCRA registration.
We can assist in obtaining FCRA registration and facilitate the donation process as well.
Regulate acceptance and utilization of foreign funds by associations, NGOs, trusts, and Section 8 companies.
Ensure that foreign contributions are not used for activities detrimental to national interest.
Promote transparency and accountability in the receipt and use of foreign funds.
| Type | Requirements |
|---|---|
| Normal Registration | Registered under Societies Registration Act, 1860 / Indian Trusts Act, 1882 / Section 8 Company. |
| Minimum ₹10 Lakh spent on activities (excluding admin) in last 3 years. | |
| Audited financials for the last 3 years. | |
| Prior Permission (PP) | Newly formed entity wishing to receive a one-time, specified donation. |
| Submit donor's commitment letter specifying amount, purpose, and source. | |
| No overlap in key functionaries between donor and recipient. |
Below is a sample roadmap illustrating how foreign contributions at different scales can drive impact across three focus areas: Education, Healthcare, and Clean Energy.
| Budget | Education | Healthcare | Clean Energy |
|---|---|---|---|
| ₹100 Cr |
- Build 10 model schools - Train 2,000 teachers |
- Establish 5 rural clinics - Procure 100 ambulances |
- Install 20 MW solar capacity - Electrify 10 villages |
| ₹500 Cr |
- Upgrade 50 schools with digital labs - Scholarships for 5,000 students |
- Build 15 community hospitals - Mobile health units covering 500 villages |
- Deploy 100 MW solar + 50 MW wind - Energy storage pilot |
| ₹1,000 Cr |
- Create 200 school clusters with e-learning - Fellowships for 10,000 educators |
- Develop 3 specialty hospitals - Telemedicine network for 2,000 villages |
- 500 MW renewable park - Micro-grid systems in 100 rural areas |
Approvals, paperwork, and investor connections - handled.
Talk to Us