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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

India's outbound FDI moderates to $3.42 billion in January, shows RBI data

India's outward FDI stands at $3.42 billion in January 2026, easing from December levels, with equity, loans and guarantees showing mixed trends

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Updated On : 11 Feb 2026 | 11:54 PM IST

Nifty Bank index hits all-time high; HDFC, Axis, Canara Bank soar up to 8%

Bank stocks rally on India-US trade deal, and hopes of the government raising FDI cap in PSBs to 49 per cent, and relaxing voting rights, believe analysts.

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Updated On : 03 Feb 2026 | 1:36 PM IST

ToR for banking panel likely by next month, says DFS secy M Nagaraju

On hiking FDI in PSBs, DFS Secy M Nagaraju says govt is considering raising the FDI cap to 49% from 20% to boost capital; inter-ministerial consultations are underway

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Updated On : 02 Feb 2026 | 11:30 PM IST

Union Budget 2026-27: FDI improves, but excess capacity remains

Manufacturers still have excess capacity to utilise, hindering new investments

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Updated On : 01 Feb 2026 | 11:25 PM IST

Eco Survey flags need for multi-pronged push to sustain FDI inflows

Despite a clear government intent and proven economic management, FDI inflows remain below their potential, especially for infrastructure needs

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Updated On : 29 Jan 2026 | 3:23 PM IST

Budget 2026-27: New playbook for trade, Customs reforms needed

A high-level committee should be set up to review India's trade and Customs regulations, and undertake economic impact analyses of trade agreements

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Updated On : 25 Jan 2026 | 9:53 PM IST

FDI inflows to India surged 73% to $47 billion in 2025, says UNCTAD

FDI inflows to India jumped 73% to $47 billion in 2025, driven by strong investments in services, IT, R&D and manufacturing, according to UNCTAD

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Updated On : 23 Jan 2026 | 9:17 PM IST

FDI inflows to India surged by 73 per cent to $47 billion in 2025: UN

The FDI inflows to India in 2025 surged by 73 per cent to 47 billion, mainly due to investments in services and manufacturing, and policies aimed at integrating the country into global supply chains

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Updated On : 23 Jan 2026 | 8:22 PM IST

Net FDI negative for 3rd straight month in Nov due to high repatriation

Net FDI in April-Nov period grows 7x to $5.6 billion compared to same period last year

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Updated On : 22 Jan 2026 | 12:28 AM IST

India's insurance reforms mark a fundamental structural advance

The 2025 insurance law amendments removing the FDI cap signal a decisive shift towards capital depth, competition and technology, strengthening India's push for Insurance for All

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Updated On : 20 Jan 2026 | 10:16 AM IST

India's insurance market to grow at nearly 7% CAGR over 2026-30: Swiss Re

Swiss Re projects India's insurance market to grow nearly 7% annually between 2026 and 2030, supported by regulatory reforms, higher FDI limits and rising health and motor demand

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Updated On : 19 Jan 2026 | 6:45 PM IST

Best of BS Opinion: Duopoly risks, urban woes and global disruptions

From Vodafone Idea's AGR moratorium and concerns over telecom duopoly to urban governance failures, global trade disruptions and India's openness to capital, here is today's opinion newsletter

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Updated On : 05 Jan 2026 | 6:15 AM IST

Govt panel reviews foreign banks' plans to open branches in India

Panel chaired by DFS Secretary M Nagaraju reviewed RBI proposals for foreign banks amid a gradual decline in foreign bank presence and India's push for calibrated financial liberalisation

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Updated On : 02 Jan 2026 | 10:59 PM IST

India to set up committee to oversee New Zealand FDI commitment under FTA

India and New Zealand announced the conclusion of the free trade agreement (FTA) negotiations on 22 December, under which Wellington has committed $20 billion in FDI over the next 15 years

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Updated On : 28 Dec 2025 | 5:34 PM IST

Policy changes create room for foreign insurers to explore: Sompo MD

India's non-life insurance sector is set for faster growth as the Insurance Amendment Bill allows 100% FDI, boosts investor confidence and strengthens regulation, says Mathur, Universal Sompo CEO

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Updated On : 25 Dec 2025 | 11:35 PM IST

Net FDI into India nearly doubles to $6.2 bn in April-October: RBI data

Net FDI into India rose to $6.2 billion in April-October FY26 as repatriation fell to $31.65 billion, even as outward FDI increased to $20.5 billion, RBI data showed

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Updated On : 22 Dec 2025 | 9:53 PM IST

Insurance intermediaries with high commissions may see payouts drop

Currently, 50 per cent of life insurance investment is allocated to government securities and the balance 50 per cent to other alternative investments

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Updated On : 21 Dec 2025 | 11:38 PM IST

FDI cap hike to 100% in insurance to boost coverage, jobs: Experts

The proposed FDI move will not only be instrumental in attracting fresh capital from overseas insurers but also facilitate the entry of more players, thereby spurring healthy competition

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Updated On : 17 Dec 2025 | 9:25 PM IST

100% FDI in Insurance: Legacy distribution remains hurdle for foreign firms

The FDI limit in the insurance sector was raised from 49 per cent to 74 per cent in 2021

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Updated On : 14 Dec 2025 | 11:24 PM IST

Cabinet approves 100% FDI in insurance; Bill likely in Parliament on Monday

The source further said that this is likely to be tabled on Monday in the ongoing winter session of Parliament, which is slated to conclude on December 19

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Updated On : 12 Dec 2025 | 11:16 PM IST