ABSTRACT

“Foreign Direct Investment (FDI) in India is the major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India. India allows FDI in most sectors through the Automatic route, but in certain segments that are considered sensitive for the economy and security; the proposals have to be first cleared by Foreign Investment Promotion Board (FIPB).”

“In India, FDI inflows have raised rapidly, from $24 billion in 2012 to $44.2 billion in 2015 — a seven-year high. This increase is also fairly broad-based. It is not just the e-commerce (trading) sector that has received more inflows; but other sectors such as computer software and hardware, construction, services, autos and the telecom sectors also account for a large share of the increase.”

Key-Words: FIPB, FDI, GIIN, M&A.