As a step forward to liberalize better, the process of reforms have really created good results by widening the opportunities of greater investment in the Indian economy. The paper work retrenchment is something which is highly noticeable these days and the government is much more generous with all its policies. A huge inflow of funds has been experienced significantly by the capital markets actually.
The Indian economy has fortunately acquired such a powerful position where it is ready to face the tough competition of facing the overseas market and deal with the international investors. The international investors seriously feel that India has a very good potential market which can promise them fantastic returns over their investments.
Now let us take a look at the policy changes that has taken place
Industrial policy
There has been some real good business promoting reforms that India has ensured to accelerate the economic growth of the country. The government has actually removed the requisition of the industrial license and had it simplified greatly which is now helpful for the investment actually. They have really taken a step forward to open their arms and welcome foreign technologies. Except for certain sectors this is applicable in all other industries.
Some of the sectors that would still require the industrial license are public sector enterprises, manufacturing of products which have been reserved for small scale sector, and industries that have been retained under compulsory licensing.
Foreign investment policy
Except for certain sectors like the rail and defense the foreign investment policy is found to be applicable in most of the sectors. It is really fortunate for international investors to get the permission of setting up 100 percent subsidiaries in India. They are not expected to take any kind of prior permission from RBI.
The investments should be following a set of guidelines and it should be fulfilled within a specified frame of time. But this policy is applicable only and only for investments that are new and not for the equity that are obtained from al ready existing owners of equity. “Automatic approval of route” is the name given to this particular procedure.
Foreign investment promotion board (FIPB)
In order to encourage the flow of FDI (foreign direct investments) the government has set up something known as FIPB. This has led to the simplification of the process that is usually followed for investment actually. And this has also opened the scope of recommendation for the foreign investments.
Secretariat for industrial assistance (SIA)
The SIA is expected to report to the Department Of Industrial Policy and Promotion in the Ministry Of Commerce & Industry. They report with the purpose of establishing a one single window clearance for any new business initiative, receiving and then processing applications, facilitation of investors, making decisions pertaining to policy with respect to technology and investment and glean or collect and publish the data for some industries.
Automatic approval route and FIPB Route
The Foreign Direct Investment policy of the government of India and the Foreign Exchange Management Act of India 1999 (FEMA) guides any kind of foreign investment into India. After the period when reforms were introduced the Government has made it a point to do away with all the prerequisites for approval from the government for any kind of fresh investments actually. However the policies have not come to a complete end in certain sectors.
A new cell which is known as the “Investment Promotion and Infrastructure Development Cell” has been set up in order to encourage investment and to organize and harmonize with the industry for the purpose of having the infrastructure sector developed properly.
>> Please be advised that in order to invest in India you would need a PAN Number. More info on pan number can be found here: www.PanCardNri.com
The Indian economy has fortunately acquired such a powerful position where it is ready to face the tough competition of facing the overseas market and deal with the international investors. The international investors seriously feel that India has a very good potential market which can promise them fantastic returns over their investments.
Now let us take a look at the policy changes that has taken place
Industrial policy
There has been some real good business promoting reforms that India has ensured to accelerate the economic growth of the country. The government has actually removed the requisition of the industrial license and had it simplified greatly which is now helpful for the investment actually. They have really taken a step forward to open their arms and welcome foreign technologies. Except for certain sectors this is applicable in all other industries.
Some of the sectors that would still require the industrial license are public sector enterprises, manufacturing of products which have been reserved for small scale sector, and industries that have been retained under compulsory licensing.
Foreign investment policy
Except for certain sectors like the rail and defense the foreign investment policy is found to be applicable in most of the sectors. It is really fortunate for international investors to get the permission of setting up 100 percent subsidiaries in India. They are not expected to take any kind of prior permission from RBI.
The investments should be following a set of guidelines and it should be fulfilled within a specified frame of time. But this policy is applicable only and only for investments that are new and not for the equity that are obtained from al ready existing owners of equity. “Automatic approval of route” is the name given to this particular procedure.
Foreign investment promotion board (FIPB)
In order to encourage the flow of FDI (foreign direct investments) the government has set up something known as FIPB. This has led to the simplification of the process that is usually followed for investment actually. And this has also opened the scope of recommendation for the foreign investments.
Secretariat for industrial assistance (SIA)
The SIA is expected to report to the Department Of Industrial Policy and Promotion in the Ministry Of Commerce & Industry. They report with the purpose of establishing a one single window clearance for any new business initiative, receiving and then processing applications, facilitation of investors, making decisions pertaining to policy with respect to technology and investment and glean or collect and publish the data for some industries.
Automatic approval route and FIPB Route
The Foreign Direct Investment policy of the government of India and the Foreign Exchange Management Act of India 1999 (FEMA) guides any kind of foreign investment into India. After the period when reforms were introduced the Government has made it a point to do away with all the prerequisites for approval from the government for any kind of fresh investments actually. However the policies have not come to a complete end in certain sectors.
A new cell which is known as the “Investment Promotion and Infrastructure Development Cell” has been set up in order to encourage investment and to organize and harmonize with the industry for the purpose of having the infrastructure sector developed properly.
>> Please be advised that in order to invest in India you would need a PAN Number. More info on pan number can be found here: www.PanCardNri.com
1 comment:
yes indeed a very helpful article.
Keep up the good work.
Cheers
Shay
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