India has long had a complex relationship with foreign direct investment (FDI) given a colonial past that resulted in skepticism about the benefits of foreign investment. After decades of being mostly closed to foreign investments, India began to open its economy in 1991, though inward FDI remained below US$10 billion per year until 2005-06 when the Indian government increased the number of sectors in which it allowed 100% foreign invested entities without prior approval and increased the foreign investment cap in othersPune Investment. FDI grew further under the Make in India program introduced in September 2014 and the Production Linked Incentive Scheme announced in 2020-21Guoabong Investment. While most sectors of the economy were open to foreign investors without prior approval by 2020, some sectors remain off-limits, require government approval, or are still subject to percentage caps on foreign ownership.Pune Stock
FDI inflows in India grew from US$15 billion for the 1990-1999 period to US$161 billion for 2000-2009, US$372 billion for 2010-2019, and US$158 billion for 2020-2022 during the pandemicAgra Stock. The GDP impact of foreign affiliates in India went from 10.5% of GDP in 2010 to 21.8% of a much larger GDP in 2021.
Kolkata Investment