FDI (Foreign Direct investment) is to allow foreign companies to invest in retail sector of India. To improve the economic status of India, the present government has allowed FDI in India. It has accepted that 100% FDI can be implemented in case of single brand store and 51% in multi brand stores.
Government has permitted 49% FDI in Indian airline carriers and 49% in power trading. The Foreign direct investment in radio broadcasting and TV has been raised to 74%.
With the investment of foreign companies in India, the governments has increased the price of highly subsided fuel, diesel by 5 rupees per liter. The number of cooking cylinders will be cut down to six per customer and if the customer requires extra cylinder, the price of cylinder will be double the market rate. FDI in multi brand retail is allowed in cities with population of more than 1 million and this scheme is limited to only few willing states.