Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans".
On 17 April 2020, India changed its foreign direct investment (FDI) policy to protect Indian companies from "opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic", according to the Department for Promotion of Industry and Internal Trade.
[9] The World Investment Report 2020 by the UN Conference on Trade and Development (UNCTAD) said that India was the 9th largest recipient of FDI in 2019, with $51 billion of inflow during the year, an increase from $42 billion of FDI received in 2018, when India ranked 12 among the top 20 host economies in the world.
According to Financial Times, in 2015 India overtook China and United States as the top destination for the FDI.
In 2014, the government increased foreign investment upper limit from 26% to 49% in insurance sector.
It also launched Make in India initiative in September 2014 under which FDI policy for 25 sectors was liberalised further.
In April 2020, government amended existing consolidated FDI policy for restricting opportunistic takeovers or acquisition of Indian companies from neighbouring nations.In March 2020,government permitted Non Resident Indians (NRIs) to acquire up to 100% stake in Air India India was ranking 15th in the world in 2013 in term of FDI inflow, it rose up to 9th position in 2014[17][unreliable source?]
On 18 April 2020, the government of India passed an order that would protect Indian companies from FDI during the pandemic.
All countries sharing a land border with India would now face scrutiny from the Ministry of Commerce and Industry before any FDIs.
[23][24][non-primary source needed][25] The Electronics system design and manufacturing (ESDM) sector in India is rapidly growing and India is poised to become a global electronics manufacturing hub in the future with targeted exports of US$180 billion within 2025.
Indian pharma industry is expected to grow at 20% compound annual growth rate from 2015 to 2020.
Service sector includes banking, insurance, outsourcing, research & development, courier and technology testing.
Except Hydrocynic acid, Phosgene, Isocynates and their derivatives, production of all other chemicals is de-licensed in India.
Indian aerospace manufacturing is also growing rapidly and has attracted huge investments.