Reasons for Foreign Direct Investment - FDI in India

Foreign Direct Investment of FDI is defined as the process in which giant companies and multi-national companies purchase capital and invest in a developing country. Over the past few decades, India has been a prominent FDI destination for numerous companies. With the economic advancements at 7%+, India has become one of the fastest-growing economies of the world. Also, over the past years, the government has made major economic reforms for the uplift of the economy, leading to an increase in FDI for long term investment plans. 

Provided below are some of the reasons for growing FDI in India:

• There has been increased relaxation in the previously strict FDI norms. The government has done away with real estate brokerage. There will be no need of Department of Revenue approval for FDI proposals, allowance of 100% FDI in single-brand retail through an automatic system. FDI in defense increased significantly.

• As 47% of Indian population is below 25 years, it is the country of the greatest young population. Hence, it offers a large and cheap labour force, with high productivity. Owing to low labour cost, India is highly sought after for FDI.

• There is a huge consumption market of middle-class people in India. They are a huge consumer base for foreign company product and services. Also, India is the 3rd largest economy in the world in terms of purchasing power.

• There is a steady economic growth in India, and it is expected to grow in the near future. The domestic economy can easily sustain demand and inflation rate. 

• India has a huge pool of talented and bright youngsters, which is an advantage for foreign companies. They find the use of their creativity and skills under various opportunities under the FDI by companies.

FDI consultancy services in India is provided by law firms which offer services for set up of companies in India. They are genuine and provide professional service. We are also a trusted legal firm with a group of expert lawyers who offer various services. We offer the services at reasonable prices for FDI consultancy.