India is one of the top destinations for global foreign direct investments. There are
many factors which make India a attractive FDI destination. India is the third ...
FOREIGN DIRECT INVESTMENT India is one of the top destinations for global foreign direct investments. There are many factors which make India a attractive FDI destination. India is the third largest economy in the world with GDP (PPP) worth US$ 4.5 trillion. Despite the economic recession India economy has remained stable. Government of India is considered very transparent in the matters of foreign investment. It has one of the highest numbers of engineers and scientist in Asia. There are very transparent laws for establishing companies in India and it is easy to file for license. It has very friendly economic reforms, which include stable tax rates, acts and amendments favorable to creditors and companies, Foreign Exchange Management Act, and repatriation of capital investments as well as profits and dividends. All the major international banks have presence in India. India has received Foreign Direct Investment worth US$ 266 billion from April 2000 to August 2012. In 2011-12, India received $ 46.5 billion in FDI.
Foreign
Companies set up 288 large scale manufacturing projects, creating an estimated 142,235 new jobs, mostly in the automotive, industrial equipment and metals industries. India also received 238 large back-office and business process outsourcing (BPO) projects creating 30,269 new jobs, mainly in the IT services industry. Foreign investors in India are highly satisfied lot. About 70% of the current investors have shown commitment to increase their operations in India. USA, Germany, the UK, France, Japan and UAE are top investors in India. The 10 sectors attracting most FDI in India are: 1. Electrical Equipment 2. Transportation Industry 3. Services Sector 4. Telecommunications 5. Fuels (Power & Oil Refinery) 6. Chemicals
7. Food Processing Industries 8. Drugs & Pharmaceuticals 9. Cement & Gypsum Products 10. Metallurgical Industries 46 Saudi companies with investment of US$ 228.8 million are functioning in India. 486 Indian companies working under SAGIA license have established joint ventures with Saudi partners in different sectors and have invested more than US$ 1.06 billion in Saudi Arabia. India has one of the most liberal and transparent policies on FDI among the emerging economies. FDI up to 100% is allowed under the automatic route in most of the sectors. In these sectors, investment could be made without approval of the Central Government or RBI. The following sectors require prior approval of the Government:1. Sectors prohibited for FDI 2. Activities/items that require an industrial license 3. Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field 4. Proposals for acquisitions of shares in an existing Indian company in financial service sector and where Securities and Exchange Board of India (substantial acquisition of shares and takeovers) regulations issued in 1997 is attracted 5. All proposals falling outside notified sectoral policy/CAPS under sectors in which FDI is not permitted. Most of the sectors fall under the automatic route for FDI. In these sectors, investment could be made without approval of the central government. The sectors that are not in the automatic route, investment requires prior approval of the Central Government. The approval in granted by Foreign Investment Promotion Board (FIPB). In few sectors, FDI is not allowed.
After the grant of approval for FDI by FIPB or for the sectors falling under automatic
route, FDI could take place after taking necessary regulatory approvals from the State governments and local authorities for construction of building, water, environmental clearance, etc.
For
detailed
information
regarding
investment
http://www.investindia.gov.in/?q=investment-opportunities and http://www.rbi.org.in/scripts/faqview.aspx?id=26
please
visit
