My Seventh Blog: Do you really know about FDI & its impact on India ?

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Foreign Direct Investment (FDI) refers to the investment made by a foreign company or individual in a business located in another country. It can be in the form of purchasing stakes in a company, establishing a subsidiary, or acquiring a business entity.

FDI allows foreign entities to gain control and ownership of assets and resources in a foreign country. It also enables them to access new markets, resources, and technology. For the host country, FDI can provide an inflow of capital, employment opportunities, economic growth, and technology transfer.
 



The impact of FDI on the host country can be positive or negative depending on various factors such as the quality of the investment, the industry it operates in, and the level of engagement with the local stakeholders. FDI has become increasingly significant in today's globalized economy, and it is a key force behind economic growth and development.

India has become one of the most attractive destinations for FDI, and the Indian government has taken several measures in recent years to further improve the investment climate.

India received a total FDI inflow of USD 81.72 billion during 2020-21, which is the highest ever. Major sectors that attracted FDI during this period included computer software and hardware, services, and construction development. The majority of FDI in India comes from countries like the USA, Singapore, Mauritius, Japan, and the UK.

The Indian government has also introduced various measures to simplify the FDI policy, such as providing single-window clearance, automatic route approvals, and allowing 100% FDI in various sectors such as defense, insurance, single-brand retail, and others.

Overall, FDI in India is expected to grow further in the future, as India's economy continues to grow and the government takes necessary steps to further improve the investment climate.

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