FDI in India An Economic Strategy for National Development

1. FDI in India: An Economic Strategy for National Development Foreign Direct Investment (FDI) is the purchase of a stake of a company by another company that is established in some other country. Through FDI, companies willing to expand their existence in other parts of the world fulfill the target. However, FDI in India is by and large a regulated Government policy. Since the early 1990s, the Government of India has opened up the industries one by one to foreign companies. Most recently, under the “Make in India” plan most of the industries in India have been opened for the FDI. 100% FDI is allowed across a range of key industries such as pharma, automobile, mining, textile, consumer electronics, medical devices, chemicals & fertilizers, and much more. Foreign Direct Investment in India Just like in any other country FDI in India is one of the best ways through which the nation can work towards building its economy. Investment into the Indian companies from the international companies directly can pump in a new impetus into the economy of the nation. These FDI moves are considered to be like a whiff of fresh air for the Indian economy and are witnessed as some of the major contributing factors to the economy of the nation. On the other hand, the foreign companies interested in investing in India want to see the market condition and prospects. After all, they are going to invest in millions. It is when thorough market research is required.

2. FDI post COVID-19 Even after the occurrence of the pandemic, India continues to be one of the hot spot destinations for the foreign companies where they are looking for prospects of FDI. The foreign companies and their leaders already have plans of investing in the companies of the nation on a short as well as a long term basis. In 2020, despite the pandemic, an FDI of USD 64 billion entered India. The figure has seen enormous growth as compared to the previous year when USD 51 billion entered the Indian market. Apart from the USA, even companies from other nations like Japan, UK, Germany, Taiwan, and Singapore are aggressively investing in India. A great boost to the national economy There is no doubt to the fact that FDI in India happens to be a great boost for the economy. This is not only true for the brand which is being invested in but also for the people who are working in it. Such FDI can happen to be one of the major reasons why India is still able to face the economic slug due to the pandemic. It has been found that foreign companies have plans of investing in India in the coming couple of years. FDI in India is a substantial investment by a foreign company in any Indian business. The GoI has a certain strategy in FDI. Since the early 1990s, GoI is strategically opening up the different sectors for FDI. On the other hand, foreign companies interested in expanding in India want to learn about the market for which they seek the assistance of top-notch market researching firms.