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GlossaryITXWhat is FDI (Foreign Direct Investment)?
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What is FDI (Foreign Direct Investment)?

Foreign Direct Investment (FDI) is investment by a non-resident into an Indian company's equity, under the FDI policy and FEMA regulations.

Bare Law Reference: FEMA; FDI Policy; RBI regulations.

Detailed Explanation

How it works

FDI is permitted under the automatic or government route depending on the sector, with reporting in Form FC-GPR to the RBI through an authorised dealer bank.

Frequently asked questions

What is FDI?

Investment by a non-resident into the equity of an Indian company under the FDI policy.

How is FDI reported?

Through Form FC-GPR to the RBI via an authorised dealer bank within the prescribed time.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • FDI is inbound equity investment into India.
  • Automatic or government route by sector.
  • Reported in Form FC-GPR to the RBI.
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