All About FDI in India
About FDI in India
The FDI considered an essential source for the non-debt financial resources for the entire economic development of the country. There have been many foreign countries in the past that have shown interest in investing in India. These international companies have taken the benefits and advantages of the following fact. Regarding India:
A: Lower and cheap wage rates: India, as a country, is considered to be the place where there is a vast amount of cheap labor available. It is because the supply of energy is way more than the demand for labor, which allows the companies to take advantage and pay less.
B: Investment Privileges: India, as a country, is known for another thing. The rules for foreign direct investment in India are very flexible. It allows the companies further types of exemptions, such as tax exemptions.
Hence, for any country where the foreign investments made, this means achieving the proper technical know-how. It also results in generating a tremendous amount of employment.
It is all thanks to the government of India that the robust environment of the business and the various policy regimes have ensured that the capital from the foreign markets keeps flowing in the country regularly. For this purpose, the government of India has taken a plethora of initiatives. In recent years such as it has relaxed the norms of FDI India in the various sectors such as:
A: Stock Exchanges
C: PSU Oil
F: Power Exchanges
The market size of FDI India:
As per the reports of the Department for Promotion of Industry and Internal Trade (DPIIT), the equity of FI is seen inflowing in the country at US$ 456.79 billion from April 2000 to December 2019. It indicated that the efforts of the government actually to ease of doing business in India and the various relaxations in the form of FDI India had shown results. India is no doubt that a very desired place to carry on the business at.
The equity of the FDI India inflows in the country at US$ 36.79 billion during April-December 2019. The recent data showed the service sector contributed to the highest amount of FDI of about US$ 6.52 billion. The next industry, which provides is computer software and hardware, which stands at US$ 6.34 billion. The third number is the telecommunications sector, which stands at US$ 4.29 billion. Lastly, it is the trading sector, which stands at US$ 3.52 billion.