In order to make India's FDI regime simple and easy to understand for investors, the Department of Industrial Policy and Promotion (DIPP), a nodal agency on FDI related matters, will release the 6th edition of the consolidated Foreign Direct Investment (FDI) policy soon, which will incorporate the changes made in the regulations over the past one year.
FDI is considered crucial for economic development of a country and to attract maximum FDI into the country, the government has been liberalizing the foreign investment policy. The government in FY14 Budget has proposed to follow the international practice with regard to defining FDI and foreign institutional investors (FII) to remove the ambiguity in making distinction between the two types of investments. India has allowed FDI in most of the sectors through automatic route including multi-brand retail, power exchanges and broadcasting among others.
In the April-January period of FY13, FDI contracted by 33 percent to $21 billion against $31 billion in the same period of previous fiscal due to global economic uncertainties. India receives maximum FDI from Mauritius, followed by Japan, Singapore, the Netherlands and the UK.
