Successful Strategies For Doing Business In Asia: India

1. What role does the government of India play in approving and regulating foreign direct investment?

Historically, India has been a regulated economy since its independence. The government of India (GOI) launched a new generation of economic growth on 24 July 1991 with the announcement of the New Industrial Policy Statement, which liberalized norms authorizing foreign direct investment and technology collaborations in specific sectors, subject to certain limitations. Since 1991, the foreign direct investment (FDI) policy has been further liberalized and made significantly investor-friendly.

The foreign exchange mechanism (inflow and outflow of foreign currencies) and the regime for investment and borrowing in foreign currencies in India are governed by the Foreign Exchange Management Act, 1999 (FEMA) and the rules, regulations and clarifications issued by the Reserve Bank of India (RBI) and the Central Bank of India. The GOI regulates FDI proposals through the Foreign Investment Promotion Board, Ministry of Finance (FIPB). FIPB acts as a single window to foreign investment in India. Any investment proposal that requires governmental approval must obtain FIPB certification. Applications to the FIPB are submitted both online in the prescribed form as well as by filing a hard copy.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:


MERITAS - Law Firms Worldwide on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.