FDI vs ODI: The Complete 2026 Guide for Cross-Border Investors

Understanding the flow of capital between India and Australia is critical for compliance.

FDI (Foreign Direct Investment)

Direction: Money coming INTO India.

Scenario: An Australian tech firm sets up a development center in Pune.

Key Compliance (2026):

• Form FC-GPR: Must be filed with the RBI within 30 days of share allotment.
• Valuation: Shares cannot be issued below fair market value (DCF method).

ODI (Overseas Direct Investment)

Direction: Money going OUT of India.

Scenario: An Indian manufacturing company sets up a sales office in Melbourne.

Key Compliance (2026):

• UIN Generation: You must get a Unique Identification Number from RBI before remitting funds.
• APR Filing: Annual Performance Reports must be filed by Dec 31st every year.