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India - Invest in India
Foreign Direct Investment (FDI) in India
India is in the global arena for increased foreign investment termed Foreign
Institutional Investment (FII) - and Foreign Direct Investment (FDI). While its
size and growth potential make India attractive as a market, the most compelling
reason for investors to be in India is that it provides a high Return on
Investment (ROI). India is a free market democracy with a legal and regulatory
framework that rewards free enterprise, entrepreneurship and risk taking.
Foreign investment is welcome in almost all the areas, except those of
strategic concern (for instance, defense and atomic energy) and generally 100%
FDI under automatic route is permitted. In such a changed investment climate,
India is offering attractive business opportunities in virtually every sector of
the economy.
The Government has recently passed a Special Economic Zones (SEZs) Bill. SEZs
are treated as deemed foreign territory with no import or export tariffs and
extended periods for waiver of income taxes. Fourteen SEZs have been set up and
many more are in the pipeline. Legislation on Intellectual Property Rights (IPRs)
has been adopted by the country’s Parliament.
All IPR laws are TRIPS (Trade
Related Aspects of Intellectual Property Rights) compliant with a fully
functional Intellectual Property Appellate Tribunal. In order to encourage flow
of investment into the country, the Government of India has set up several
investments facilitation agencies, which include:
- Foreign Investment Promotion Board (FIPB)
- Foreign Investment Implementation Authority (FIIA)
- Investment Commission (IC)
- Secretariat for Industrial Assistance (SIA)
- India Brand Equity Foundation (IBEF)
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