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What is Foreign Direct Investment (FDI)

FDI

About FDI

What is Foreign Direct Investment (FDI)

Foreign direct investment (FDI) is when a company takes controlling ownership in a business entity in another country. With FDI, foreign companies are directly involved with day-to-day operations in the other country. This means they aren’t just bringing money with them, but also knowledge, skills and technology.
 
Generally, FDI takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.  
 
Where is FDI made?
 
Foreign Direct Investments are commonly made in open economies that have skilled workforce and growth prospect. FDIs not only bring money with them but also skills,
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Latest Updates on FDI

Trade body calls for rollback of FDI in inventory-based ecom policy

CAIT seeks rollback of the new e-commerce FDI export policy, alleging it favours Amazon and Flipkart, while experts say clearer implementation rules are needed

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Updated On : 24 Jul 2026 | 10:28 PM IST

Bupa open to raising stake in Niva Bupa

Bupa is open to increasing its stake in Niva Bupa as its India business outperforms global operations, with the insurer also focusing investments on technology and distribution

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Updated On : 24 Jul 2026 | 5:14 PM IST

Govt allows Amazon and Flipkart to build inventories for exports

The DPIIT said the restrictions on inventory-based e-commerce models would no longer apply where such entities deal exclusively in exports of goods manufactured or produced in India

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Updated On : 23 Jul 2026 | 10:31 PM IST

India's ambition of becoming developed economy demands policy certainty

India needs predictable tax, trade and regulatory policies to attract foreign capital, boost investment and achieve its Viksit Bharat growth ambitions

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Updated On : 22 Jul 2026 | 11:44 PM IST

Foreign investors return shows renewed confidence in India: RBI bulletin

The central bank said resilient domestic activity, improving trade momentum and stronger foreign investment inflows point to a favourable outlook for the Indian economy

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Updated On : 22 Jul 2026 | 11:28 PM IST

Best of BS Opinion: India's foreign exchange strategy needs stable capital

From forex inflows and examination reform to FPI policy, rupee depreciation and behavioural science, today's Best of BS Opinion examines India's key policy choices

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Updated On : 22 Jul 2026 | 6:15 AM IST

What's next for insurance after 100% FDI: Governance challenges ahead

India's 100% FDI regime for insurance opens the sector to global players, but faster approvals, stronger oversight and AI safeguards will determine its long-term success

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Updated On : 12 Jul 2026 | 10:47 PM IST

Why foreign-owned ecom firms' operating models are under the lens

Foreign e-commerce companies are allowed to do business through the marketplace model as opposed to the inventory-led format

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Updated On : 12 Jul 2026 | 10:31 PM IST

Alphabet-led project drives 44% jump in India's foreign investment: UN

Total FDI rose 44% to $39 billion last year, UN Trade and Development said in its annual World Investment Report released Tuesday

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Updated On : 08 Jul 2026 | 2:10 PM IST

India rose to 11th among top FDI destinations in 2025: UN report

UNCTAD says FDI inflows rose to $38.89 billion in 2025 as India strengthened its appeal for advanced manufacturing, although announced greenfield investments moderated amid global uncertainty

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Updated On : 07 Jul 2026 | 11:07 PM IST

BITs: Credibility comes at a price for attracting foreign investment

When we go back to treaties, we should think more about how this will work out. It will help to have a pre-funded, ring-fenced pool to honour adverse awards

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Updated On : 05 Jul 2026 | 10:23 PM IST

Net FDI jumped over fourfold to $6.58 billion in April, shows RBI data

Gross FDI inflows rose 65 per cent year-on-year, while lower repatriation by foreign investors helped push net foreign direct investment sharply higher

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Updated On : 22 Jun 2026 | 11:13 PM IST

Outward FDI commitments by Indian firms drop 49% in May: RBI data

Equity investments abroad dropped sharply to $1,247.82 million in May from $3,537.35 million in April, marking a decline of about 64.72 per cent

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Updated On : 10 Jun 2026 | 6:44 PM IST

India likely to pursue FDI commitment under proposed CEPA with Canada

New Delhi may pursue an investment commitment under the proposed CEPA with Canada, mirroring recent trade agreements that included long-term foreign direct investment targets

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Updated On : 04 Jun 2026 | 11:56 PM IST

Best of BS Opinion: Water stress, IIP reforms, and the Quad's quandary

Today's BS Opinion examines India's deepening water stress, the revised IIP framework, Middle East-linked growth risks, the Quad's evolving strategy, and a review of The Liver Doctor

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Updated On : 29 May 2026 | 6:15 AM IST

Net FDI into India rises sharply to $7.65 billion in FY26: RBI data

Net FDI into India rises sharply in FY26, aided by higher gross inflows and reinvested earnings, though portfolio investment flows remain weak

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Updated On : 22 May 2026 | 11:28 PM IST

Third India-Nordic Summit: Nordic nations to invest $100 bn in 15 years

India offers 100% FDI to Nordic defence firms in defence industrial corridors

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Updated On : 19 May 2026 | 11:07 PM IST

FTAs, lower import duties to boost India's FDI flows: ADB chief economist

During 2021-22, India attracted net Foreign Direct Investment (FDI) of $38.6 billion, which came down to $28 billion in FY23 and further fell to $10.2 billion in FY24

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Updated On : 17 May 2026 | 12:57 PM IST

Best of BS Opinion: Manufacturing ambition, the next IT state and more

From manufacturing reforms and Bengal's industrial future to Japan ties, wildlife conflict and digital culture, today's commentaries examine India's evolving challenges

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Updated On : 11 May 2026 | 6:15 AM IST

Manufacturing ambition: India needs a coherent strategy to boost industry

In a fast-changing global environment, India needs a coherent strategy and a set of reforms to attract investment and meaningfully increase manufacturing output

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Updated On : 10 May 2026 | 9:43 PM IST