( Originally published on Jan 23, 2017 )
Net Foreign Direct Investment
Synopsis
As per RBI, foreign investment is considered as foreign direct investment (FDI) if the investment is made in equity shares, fully and mandatorily convertible preference shares and fully and mandatorily convertible debentures. In India, foreign direct investment can be done via two routes namely - Automatic route requiring no prior approvals subject to exceptions and Approval route requiring mandatory prior approval of Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance.
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