Understanding FDI Regulations Before Setting Up a Business in India
India has rapidly emerged as one of the world's most sought-after destinations for foreign direct investment. For any overseas entrepreneur or corporation planning to enter the Indian market, understanding the FDI regulatory framework is an indispensable first step — and increasingly, global investors are partnering with experienced FDI consultants in India to navigate this landscape efficiently and compliantly. The FDI Framework in India India's FDI framework is governed primarily by the Foreign Exchange Management Act, 1999 (FEMA), the Consolidated FDI Policy (effective October 15, 2020), and directions issued by the Reserve Bank of India (RBI), alongside policies formulated by the Department for Promotion of Industry and Internal Trade (DPIIT). Together, these instruments define sectoral caps, permissible investment routes, and compliance obligations. To encourage global participation, India has opened 100% FDI across major sectors — including defence, telecom, e-commerce, ...