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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

DPIIT amends 'Press Note 3' to ease FDI norms for border countries

The government has amended Press Note 3 under the FDI policy, allowing investors from countries sharing land borders with India to hold up to 10 per cent non controlling stakes via the automatic route

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Updated On : 16 Mar 2026 | 12:07 PM IST

Rethinking FDI: Investment policy must evolve with changing realities

The revised guidelines should help improve the ease of doing business and attract FDI

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Updated On : 12 Mar 2026 | 12:13 AM IST

FDI easing under Press Note 3 not meant for Chinese firms, clarifies govt

Automatic-route investment applies only to global entities with up to 10% Chinese ownership; firms registered in China must still seek government approval

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Updated On : 11 Mar 2026 | 11:20 PM IST

FATF: India building tools to detect unregistered virtual asset firms

India plans an indigenous Virtual Asset Lab to detect unregistered offshore crypto platforms as regulators tighten oversight following FATF concerns over money-laundering risks

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Updated On : 11 Mar 2026 | 11:02 PM IST
Updated On : 11 Mar 2026 | 10:10 PM IST

FDI easing only for non-LBC entities with minority Chinese stake: Official

Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any sector

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Updated On : 11 Mar 2026 | 8:33 PM IST

Easing FDI norms to boost auto ancs, EV, EMS, specialty chemicals: Analysts

Analysts said that companies involved in sectors like EV, EMS, auto ancillary, BESS, renewable energy, and specialty chemicals are expected to benefit most from the easing FDI rules

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Updated On : 11 Mar 2026 | 2:03 PM IST

Timeline: How India-China ties moved from border clash to investment thaw

In February 2026, India began easing its restrictions on buying Chinese equipment

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Updated On : 11 Mar 2026 | 1:13 PM IST

Govt eases China-linked FDI curbs under Press Note 3: What it means

The Union Cabinet has reportedly eased FDI norms under Press Note 3, which requires prior government approval for investments from entities in countries sharing a land border with India

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Updated On : 10 Mar 2026 | 5:19 PM IST

Govt relaxes FDI norms for China, other countries sharing land border

The decision was taken in a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi

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Updated On : 10 Mar 2026 | 3:06 PM IST

100% FDI gives flexibility to serious insurers: Generali Central Insurance

Anup Rau shared his views on FDI, insurance penetration, regulation, bancassurance, and the company's growth plans

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Updated On : 02 Mar 2026 | 11:52 PM IST

Norms on investments from China can be eased in calibrated way: Goyal

Piyush Goyal says China-origin FDI is not banned and approvals will be sped up, as India considers a calibrated relaxation of Press Note 3 norms while advancing a broad FTA agenda

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Updated On : 24 Feb 2026 | 11:47 PM IST

Gold imports not alarming yet, FDI inflows a puzzle: FM Sitharaman

'Too soon to comment on US tariff twist, but India committed to forging more trade deals'

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Updated On : 23 Feb 2026 | 11:57 PM IST

Net FDI stays negative for fourth month as repatriations rise sharply

Net FDI remained in negative territory for the fourth consecutive month in December as repatriations rose sharply, even as gross inflows strengthened across key sectors and source countries

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Updated On : 20 Feb 2026 | 9:49 PM IST

UP govt receives ₹20,300 crore of FDI proposals amid investor push

These proposals have flowed in under the 'Uttar Pradesh FDI/FCI, Fortune Global 500, and Fortune India 500 Company Investment Promotion Policy 2023', the government said

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Updated On : 16 Feb 2026 | 4:47 PM IST

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