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FOREIGN DIRECT
INVESTMENT(FDI)
Q.1. What is the
objective of FDI?
It is the intent and
objective of the Government of India to attract and promote foreign direct investment
in order to supplement domestic capital, technology and skills, for accelerated
economic growth. Foreign Direct Investment, as distinguished from portfolio
investment, has the connotation of establishing a 'lasting interest' in
an enterprise that is resident in an economy other than that of the investor.
The Government has put in
place a policy framework on Foreign Direct Investment, which is transparent,
predictable and easily comprehensible. This framework is embodied in the Circular
on Consolidated FDI Policy, which may be updated every year, to capture and
keep pace with the regulatory changes, effected in the interregnum. The Department
of Industrial Policy and Promotion (DIPP), Ministry of Commerce &
Industry, Government of India makes policy pronouncements on FDI.
Q. 2. Who can invest in India?
