Re: FOREIGN DIRECT INVESTMENT
The Indian Government's attitude towards foreign investment has changed significantly during the past decade. Foreign investment, which was permitted only in restricted industries under special conditions, has been liberalised across the board, excluding certain restricted or prohibited industries.
This reflects the growing confidence in the fundamentals of the Indian economy, and a huge step in the efforts of the Indian Government to integrate with the global economy. Approval routes for foreign investment in India are primarily through:
automatic route under delegated powers exercised by the Reserve Bank of India (RBI)
approval by the Government through the Foreign Investment Promotion Board (FIPB) under the Ministry of Finance.
A foreign-invested Indian company is treated at par with other locally incorporated companies. As a result, the exchange control laws and regulations for residents apply to foreign-invested companies as well. This manual on Foreign Direct Investment provides an overview of the investment facilitating institutions, modes of investment, FDI policy and regulatory framework including incentives offered to industry.