Investment in India

Continuous liberalization in FDI policy and simplification of procedures are contributing immensely to attracting increased FDI into India.

Overseas investors are looking at India as an attractive investment destination owing to the prospects of high returns. A number of Corporates and Multinational Companies from all over the world have established business in India and have expanded over the years.

India has witnessed a number of success stories – both Indian and multinational firms have registered higher profits, increased turnover and higher sales over the years. This has induced them to reinvest profits and inject fresh capital into their processes in order to reap the benefits of the Indian growth story.

The sectors attracting the highest FDI equity inflows during 2008-2009 have been the Services Sector (US$ 5.3 billion), Computer Hardware and Software (US$ 1.7 billion), Telecommunications (US$ 2.5 billion), Housing and Real Estate (US$ 2.6 billion), Construction Activities (US$ 2 billion) and Automobile Industry (US$ 1.2 billion) etc.

Investments have been made by Corporates across the board and almost all sectors have seen an inflow of funds. Global players such as Daimler Chrysler, General Motors, Ford, LG Electronics, Samsung, Sony, Amway, Tupperware, Pepsico, McDonald’s, IBM, Oracle, Microsoft, Aviva, Nortel and Nokia among others have benefited from their operations in India and have made expansion plans for the country. The companies plan to expand by way of product diversification, setting up manufacturing base in India, increasing the existing production capacity, establishing research centres in India, etc.

The Department of Industrial Policy and Promotion is the nodal agency for information and assistance to foreign investors. Their website www.dipp.nic.in has comprehensive information for foreign investors and gives weekly updates on proposals for foreign investment under consideration. It also gives information on projects available for foreign investors and contains online applications for clearances.