Skip to main content


Showing posts with the label Business and Investment

Foreign Direct Investment(FDI)

Foreign Direct Investment (FDI) may be defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The FDI Relationship consists of a parent enterprise and a foreign Affiliate which together form a transnational corporation (TNC). In order to qualify as FDI, the investment must allow the parent enterprise control over its foreign affiliate. FDI is now recognized as an important driver of growth in the country. The  Government is, therefore, making all efforts to attract and facilitate FDI and investment From Non-Resident Indians (NRIs) including Overseas Corporate Bodies (OCBs), which are predominantly owned by them, to complement and supplement domestic investment. In order to make investment in India attractive, investment and returns on them are freely repatriable, except where the approval is subject to specific conditions, viz. lock-in period on original investment, dividend c