India receives highest-ever FDI inflow in last financial year
According to the Ministry of State for Commerce and Industry India has received the highest-ever Foreign Direct Investment inflow of over six lakh 31 thousand crore rupees in the last financial year.
The central government has formulated a liberal and transparent policy to attract foreign direct investment.
FDI equity inflow into manufacturing sectors has also increased by 76 per cent in the last financial year as compared to 2020-21 to more than one lakh 58 thousand crore rupees.
What is FDI?
Foreign direct investment or FDI is an investment made by a party of one country in a business or corporation operating in another country with the intention of earning long-term profits.
Through FDI, foreign companies are directly involved in the day-to-day operations of another country.
Routes to gets FDI in India
Foreign investment in India can be done mainly through two routes -
Automatic Route - Under this route, the non-resident investor or the Indian company does not require any approval from the Government of India for investment.
Government route - Under this route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under this route are considered by the respective Administrative Ministry/ Department.
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