Thursday, December 04, 2025 | 12:55 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch
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,
...
Read More

Latest Updates on FDI

We should look at FDI from China with safeguards: CII President Memani

Memani said the government should fast-track disinvestment of public sector units and use this capital for some large transformational projects

Image
Updated On : 04 Dec 2025 | 12:04 AM IST

Rupee weakness clouds outlook for FPI flows; earnings revival key

Corporate earnings growth is estimated to be in high single digits for this fiscal and in mid-teens for the next two financial years

Image
Updated On : 04 Dec 2025 | 12:03 AM IST

No plan to lift FDI cap in public sector banks beyond 20%: MoS Finance

The FDI limit in PSBs and private sector banks is 20% and 74%, respectively

Image
Updated On : 02 Dec 2025 | 7:21 PM IST

Bill to hike FDI in insurance sector to 100% to be tabled in winter session

Finance Minister Nirmala Sitharaman in this year's Budget speech, proposed to raise the foreign investment limit to 100 per cent from the existing 74 per cent in the insurance sector

Image
Updated On : 22 Nov 2025 | 8:38 PM IST

Government should reconsider its outdated restrictions on FDI in ecommerce

To be sure, the concerns of small traders should not be dismissed. But protecting them need not mean stifling progress permanently

Image
Updated On : 04 Nov 2025 | 10:34 PM IST

Govt seeks views on allowing FDI in inventory-based e-commerce for exports

The proposal aims to boost India's exports without impacting the businesses of small retailers

Image
Updated On : 02 Nov 2025 | 12:38 PM IST

Nifty PSU Bank index hits new high, rallies 20% in 2 months; here's why

State-run banks, SBI, Uco bank, PSB among others gained up to 2% amid reports that India may considering allowing up to 49% FDI in PSU banks, more than double the current 20% cap.

Image
Updated On : 28 Oct 2025 | 10:28 AM IST

RBI's proposal on ECB likely to give realty sector a funding boost

Proposal allows External Commercial Borrowings for real-estate activities where FDI is permitted

Image
Updated On : 21 Oct 2025 | 11:29 PM IST

Emirates NBD to invest $3 bn in RBL Bank for up to 60% controlling stake

The proposed investment will be made through a preferential issue and is subject to regulatory approvals and customary closing conditions

Image
Updated On : 18 Oct 2025 | 8:38 PM IST

Don't hesitate to invest more: FM Nirmala Sitharaman to India Inc

Finance Minister Nirmala Sitharaman asked industry to shed hesitation in investing and expand capacities while partnering with the government to skill youth for faster employment

Image
Updated On : 18 Sep 2025 | 11:35 PM IST

India's outbound FDI down to $2.1 billion in August, shows RBI data

Outbound FDI, expressed as a financial commitment, comprises three components: equity, loans, and guarantees

Image
Updated On : 10 Sep 2025 | 9:20 PM IST

China's Marshall plan is to go green with solar, EV battery investments

Since 2022, China's green-tech FDI has reached $227-$250 billion, roughly matching the post-WWII Marshall Plan that strengthened US-European alliances

Image
Updated On : 10 Sep 2025 | 10:17 AM IST

Equity FDI grows 15% to $18.6 billion in Q1, total inflows up 12%

The US is also the third largest investor in India, with cumulative investments amounting to $76.26 billion between April 2000 and June 2025, ahead of Singapore and Mauritius

Image
Updated On : 03 Sep 2025 | 11:58 PM IST

Govt draft norms to ease compliance for foreign investment in insurance

The draft norms for foreign investment in insurance propose easing compliance by scrapping residency requirements for directors and KMPs while retaining key leadership conditions

Image
Updated On : 02 Sep 2025 | 8:46 PM IST

'Make the rules open': Lord Swraj Paul's long campaign for transparent FDI

The NRI industrialist's on-record pitch for clear sectoral caps and minimal approvals anticipated today's ease-of-doing-business push

Image
Updated On : 22 Aug 2025 | 4:28 PM IST

Govt mulling further FDI regime easing, more tax benefits for startups

The government is embarking on the next 100-day agenda of transformation to take India on a fast track to developed nation

Image
Updated On : 18 Aug 2025 | 6:28 PM IST

Raising FDI limit for insurers to 100% will create jobs: FM Sitharaman

The increase in FDI in Indian insurance companies from 74 per cent to 100 per cent was announced in the Union Budget on February 1, 2025

Image
Updated On : 12 Aug 2025 | 4:07 PM IST

Electronics to chemicals: Govt identifies critical sectors to boost FDI

Invest India, the investment promotion and facilitating agency under the Department for Promotion of Industry and Internal Trade (DPIIT), has been actively identifying key value chains to focus on

Image
Updated On : 27 Jul 2025 | 11:34 PM IST

Net FDI slumps 98% to $40 million in May 2025 as outward flows accelerate

For May 2025, repatriation\divestment stood at $5.0 billion, up from $4.1 billion in May 2024. In May 2025, outward FDI was $2.1 billion, higher than $1.8 billion in May 2024

Image
Updated On : 23 Jul 2025 | 11:31 PM IST

Delhi HC grants bail to NewsClick founder in ED, EOW foreign funding case

The Delhi HC granted anticipatory bail to NewsClick founder Prabir Purkayastha and director Pranjal Pandey in ED and EOW cases over alleged FDI rule violations and foreign funding

Image
Updated On : 23 Jul 2025 | 5:17 PM IST