Among the various countries from which fdi inflow is coming to india usa has emerged as the number one investor in india accounting for 858 billion of foreign direct investment approvals out of a total of 33 billion cleared till the end of 1996 97 since the liberalisation process began. With the initiation of new economic policy in 1991 and subsequent reforms process india has witnessed a change in the flow and direction of foreign direct investment fdi into the country foreign direct investment in india since 1991 trends challenges and prospects january 1 2008. Investment climate in india has improved considerably since the opening up of the economy in 1991 guidelines for foreign direct investment on e commerce sector i 100 fdi under automatic route is permitted in marketplace model of e commerce as per the rbi notification on foreign investment in india reporting in single master . Since 1991 the regulatory environment in terms of foreign investment has been consistently eased to make it investor friendly the measures taken by the government are directed to open new sectors for foreign direct investment increase the sectoral limit of existing sectors and simplifying other conditions of the fdi policy. Amount of foreign direct investment in india the total amount of fdi in india came to around us 423 billion in 2001 in 2002 this figure stood at us 541 billion in 2003 this figure came to us 754 billion and in 2004 this figure increased to us 113 billion