3 Reasons why global firms

should keep investing in India

Project submitted by- Krishnapalsinh Virpara [51]

Chhatrapalsinh Zala [53]
Raghuvirsinh Chauhan [58]

S
 Introduction

S Foreign Investment – A foreign direct investment (FDI) is

an investment in the form of a controlling ownership in a
business in one country by an entity based in another
country.

S Foreign Direct Investment in India – Foreign investment

was introduced in 1991 under Foreign Exchange
Management Act (FEMA), driven by then finance minister
Manmohan Singh.

S Types of FDI - Horizontal FDI &

Vertical FDI
 Methods of FDI

S By incorporating a wholly owned subsidiary or company

anywhere.

S By acquiring shares in an associated enterprise.

S Through a merger or an acquisition of an unrelated

enterprise.

S Participating in an equity joint ven ure with another investor

or enterprise.
 Investment routes in India

S Automatic route:
The automatic route stands for less restricted or more
liberalized regulation. Under the Automatic Route, the
foreign investor or the Indian company does not require any
approval from the Reserve Bank or Government of India for
the investment.

S Approval route:
Under the approval route or government route, the foreign
investor or the Indian company should obtain prior approval
of the Government of India agencies or bodies specified.
Major reasons for global firms
to invest in india

S India has seen growth in infrastructure spending.

S India’s emerging middle class is strong.

S The country is in a tech startup boom.