Foreign Direct Investment (FDI) plays an important role in the economic development of a country. It helps in transferring of financial resources, technology and innovative and improved management techniques along with raising productivity. India after liberalizing and globalizing the economy to the outside world in 1991, there is a massive increase in the flow of foreign direct investment.
Recent Developments FDI in States
The Walmart-Flipkart Deal The world’s largest company by revenue and the American retail behemoth Walmart acquired India’s leading Bengaluru based e-commerce firm Flipkart for $16 billion. Walmart had been trying to enter India for years. Potential Risks
Potential Benefits
100% FDI in Single Brand Retail The Union Cabinet in January, 2018 tweaked foreign investment rules to allow 100% foreign direct investment (FDI) in single-brand retail. Current Policy and Latest Changes
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An Indian company may receive Foreign Direct Investment under the two routes as given under:
FDI in India Sector Wise
Revised Position: The Government of India has reviewed the extant policy on FDI and decided that FDI, up to 100%, under the government approval route, would be permitted in Single-Brand Product Retail Trading. |