What is FDI & Why startups should care [Whiteboard Friday]
We live in a global world, which means businesses in India either needs fund from outside of India or a NRI, foreigner or a Foreign based company or VC needs to invest or start a company locally in India. In this episode of eLagaan Whiteboard Friday, the eLagaan team provides an overview of FDI (Foreign Direct Investment) and how can related to not just big companies like Walmart but also to SME, startups & entrepreneurs .
FDI is a terminology defined by RBI (Reserve Bank Of India) and is created to monitor any inflow of money from foreign countries. All funds under FDI needs to be reported to the RBI and approved based on the classification they fall under. This is also required during repatriation of money back to the country and person/company of origin. So if you are an Indian startup looking for venture capital or a partner outside of India, you need to worry about FDI.