As per the statistics published by DPIIT total FDI flow for the Quarter October, 2022 TO December, 2022 have been USD?15,980 Million. Notwithstanding an overall drop in FDI in the first half of FY23, inflows have stayed above the pre-pandemic levels, driven by structural reforms and measures improving the ease of doing business, making India one of the most attractive FDI destinations in the world. The government has implemented an investor-friendly FDI policy under which FDI up to 100 per cent is permitted through automatic route in most sectors.
India continues to open up its sectors to global investors by raising FDI limits and removing regulatory barriers to attracting increased investments, in addition to developing infrastructure and improving the business environment.
To make India a more attractive investment destination, the Government has implemented several radical and transformative FDI reforms across sectors such as Defence, Pension, e-commerce activities etc.
- In FY20, 100 per cent FDI under automatic route was permitted for the sale of coal, and coal mining activities, including associated processing infrastructure, subject to provisions of relevant acts. 26 per cent FDI under the government route has been permitted for uploading/ streaming of News & Current Affairs through Digital Media. 100 per cent FDI has been permitted in Intermediaries or Insurance Intermediaries, including insurance brokers, reinsurance brokers, insurance consultants, corporate agents, third-party administrators, Surveyors and Loss Assessors and such other entities as may be notified by the Insurance Regulatory and Development Authority from time to time
- To curb opportunistic takeovers/acquisitions of Indian companies due to the Covid-19 pandemic, the government amended the FDI policy, according to which an entity of a country which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the Government route. Further, in the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the said policy amendment, such subsequent change in beneficial ownership will also require government approval.
- To simplify the approval process of foreign Investment and to promote ease of doing business, the erstwhile Foreign Investment Promotion Board (FIPB) was abolished in May 2017, and a new regime has been put in place. Under the new regime, the process for granting FDI approvals has been simplified, wherein the work relating to the processing of applications for FDI has been delegated to the concerned Ministries/ Departments, and DPIIT is the nodal department for facilitating the process.
- A revamped portal, “Foreign Investment Facilitation Portal (FIF Portal)”, has been launched as the online single-point interface of the Government of India for investors to facilitate Foreign Direct Investment. The portal facilitates single window clearance of applications which are through the government approval route. The FIF Portal has been integrated with the National Single Window System (NSWS).
- The National Single Window System (NSWS) is a digital platform to guide in identifying and applying for approvals according to business requirements. The Know Your Approvals (KYA) module includes guidance for 32 Central Departments and 32?States. The portal hosts applications for approvals from 28?Central Departments and 20?State Governments. These approvals can be applied?through NSWS.
