Foreign Direct Investment (FDI) is an investment made by any organization or an individual in a country located in another country, generally for business purposes.
FDI takes place when an investor establishes foreign business operations or acquire foreign business assets in a foreign company and FDI is actively utilized in open markets rather than in closed markets for investors.
India is not able to find FDI Investment because of multiple reasons some of them are listed below:
- Strict government rules and regulations for FDI.
- Hard and fast labor laws.
- Receding demand in the market.
- The low purchasing potential of the people.
- Lack of state-of-the-art infrastructure and logistics to attract FDI.
- The working is insufficiently skilled.
- Availability of FDI up to a certain percent in many attractive sectors.