AN OVERVIEW
The Government of India has recently undertaken a comprehensive review of the FDI policy and associated procedures. As a result, a number of rationalization measures have been undertaken which, inter alia include, dispensing with the need of multiple approvals from Government and/or regulatory agencies that exist in certain sectors, extending the automatic route to more sectors, and allowing FDI in new sectors. The latest changes in the FDI policy were notified vide Press Note 4 (2006 Series).
As per the extant policy, FDI up to 100% is allowed, under the automatic route, in most sectors/activities. FDI under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India (RBI). Investors are only required to notify the concerned Regional office of RBI within 30 days of receipt of inward remittances and file required documents with that office within 30 days of issue of shares to foreign investors.
Foreign investors intending to set up Branch /Liaison/Project Offices would also be governed by specific Regulations under Foreign Exchange Management Act (FEMA) which, inter alia, prescribe permissible activities and approvals required for such offices. This Compendium on the extant Foreign Direct Investment Policy has been organized in three sections dealing with FDI policy, related Press Notes and FDI statistics.
Section A
Gives an overview of extant FDI policy. In the sectors listed in the statement, FDI is allowed only in the indicated activities subject to the equity limits and/or other conditions, as indicated. FDI in all sectors/activities is subject to sectoral guidelines and requirements. FDI is not permitted in Retail trade (except Single Brand product retailing); Lottery; Gambling and Atomic Energy. In the remaining sectors/activities, FDI up to 100% would be allowed on the automatic route.
Section B
contains relevant Press Notes on FDI policy and procedures in a chronological order. All
Section C
deals with FDI inflow statistics since 1991, including the country-wise and sector wise details. It also gives FDI inflow statistics, as per international practices, since 2000-01.
The Government of India has recently undertaken a comprehensive review of the FDI policy and associated procedures. As a result, a number of rationalization measures have been undertaken which, inter alia include, dispensing with the need of multiple approvals from Government and/or regulatory agencies that exist in certain sectors, extending the automatic route to more sectors, and allowing FDI in new sectors. The latest changes in the FDI policy were notified vide Press Note 4 (2006 Series).
As per the extant policy, FDI up to 100% is allowed, under the automatic route, in most sectors/activities. FDI under the automatic route does not require prior approval either by the Government of India or the Reserve Bank of India (RBI). Investors are only required to notify the concerned Regional office of RBI within 30 days of receipt of inward remittances and file required documents with that office within 30 days of issue of shares to foreign investors.
Foreign investors intending to set up Branch /Liaison/Project Offices would also be governed by specific Regulations under Foreign Exchange Management Act (FEMA) which, inter alia, prescribe permissible activities and approvals required for such offices. This Compendium on the extant Foreign Direct Investment Policy has been organized in three sections dealing with FDI policy, related Press Notes and FDI statistics.
Section A
Gives an overview of extant FDI policy. In the sectors listed in the statement, FDI is allowed only in the indicated activities subject to the equity limits and/or other conditions, as indicated. FDI in all sectors/activities is subject to sectoral guidelines and requirements. FDI is not permitted in Retail trade (except Single Brand product retailing); Lottery; Gambling and Atomic Energy. In the remaining sectors/activities, FDI up to 100% would be allowed on the automatic route.
Section B
contains relevant Press Notes on FDI policy and procedures in a chronological order. All
Section C
deals with FDI inflow statistics since 1991, including the country-wise and sector wise details. It also gives FDI inflow statistics, as per international practices, since 2000-01.