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    Foreign Direct Investment Policy of India

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    rahulsinghal06
    The document discusses India's foreign direct investment (FDI) policy. It states that FDI is allowed in all sectors except where existing policy prohibits beyond a certain ceiling. Most FDI can be brought in through the automatic route without government approval, as long as it follows sectoral policies. FDI requiring government approval includes cases that require an industrial license, have previous foreign ties, or are outside allowed sectors.

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    Foreign Direct Investment Policy of India

    Uploaded by

    rahulsinghal06
    498 views9 pages
    The document discusses India's foreign direct investment (FDI) policy. It states that FDI is allowed in all sectors except where existing policy prohibits beyond a certain ceiling. Most FDI can be brought in through the automatic route without government approval, as long as it follows sectoral policies. FDI requiring government approval includes cases that require an industrial license, have previous foreign ties, or are outside allowed sectors.

    Original Description:

    Contains brief description of FDI Policy followed by India

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    The document discusses India's foreign direct investment (FDI) policy. It states that FDI is allowed in all sectors except where existing policy prohibits beyond a certain ceiling. Most FDI can be brought in through the automatic route without government approval, as long as it follows sectoral policies. FDI requiring government approval includes cases that require an industrial license, have previous foreign ties, or are outside allowed sectors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    498 views9 pages

    Foreign Direct Investment Policy of India

    Uploaded by

    rahulsinghal06
    The document discusses India's foreign direct investment (FDI) policy. It states that FDI is allowed in all sectors except where existing policy prohibits beyond a certain ceiling. Most FDI can be brought in through the automatic route without government approval, as long as it follows sectoral policies. FDI requiring government approval includes cases that require an industrial license, have previous foreign ties, or are outside allowed sectors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    Foreign Direct

    Investment (FDI)
    Policy
    By- RAHUL SINGHAL
    MEERUT INSTITUTE OF TECHNOLOGY,
    MEERUT
    Foreign Direct Investment
     Government wishes to facilitate foreign direct investment to
    complement and supplement domestic investment

     Investment and returns are freely repatriable

     FDI is freely allowed in all sectors including the services


    sector, except where the existing and notified sectoral policy
    does not permit beyond a ceiling

     FDI for virtually all items/activities can be brought in


    through the Automatic Route under powers delegated to
    RBI and for the remaining items/activities through
    Governmental approval
    Rahul Singhal
    AUTOMATIC ROUTE
     New Ventures-

     All items/activities for FDI up to 100% fall under


    the Automatic Route except those which require an
    industrial license etc.

     Investment under Automatic Route are to be


    governed by the notified sectoral policy.

     RBI ensures compliance of the same.


    Rahul Singhal
     Foreign Investment in Existing Company

     Existing companies must have expansion programme

     The increase in equity level must result from the


    expansion of the equity base of the existing company
    without the acquisition of existing shares by foreign
    investors

     The money to be remitted should be in foreign


    currency

     Proposed expansion programme should be in the


    sectors under automatic route.
    Rahul Singhal
     Indian companies to accept investment under
    this route without obtaining prior approval
    from RBI. Investor is required to notify the
    Regional Office concerned of the RBI of
    receipt of inward remittances within 30 days
    of such receipt and file required
    documentation within 30 days of issue of
    shares to foreign investors

    Rahul Singhal
    GOVERNMENT APPROVAL
     The government approval for FDI through the FIPB route is
    necessary for following categories:

     All proposals that require an industrial license

     All proposals in which the foreign collaborator has a


    previous venture/tie up

     All proposals falling outside notified sectoral policy or under


    sectors in which FDI is not permitted
    Rahul Singhal
    Foreign Investment Policy for
    Trading Activities
     Foreign investment for trading can be
    approved through the automatic route up to
    51% foreign equity.

     Foreign investment beyond 51% requires


    Government approval through FIPB.

    Rahul Singhal
     Indian companies getting foreign investment
    approval through FIPB route do not require any
    further clearance from RBI for the purpose of
    receiving inward remittance and issue of shares to
    foreign investors.

     Indian companies to accept investment under this


    route without obtaining prior approval from RBI.
    Investor is required to notify the Regional Office
    concerned of the RBI of receipt of inward
    remittances within 30 days of such receipt and file
    required documentation within 30 days of issue of
    shares to foreign investors
    Rahul Singhal
    FDI in Small Scale Sector
     Foreign Equity in a small scale undertaking
    is permissible up to 24%.

     In case of foreign investment beyond 24% in


    a small scale unit an industrial license
    carrying a mandatory export obligation of
    50% export would need to be obtained

    Rahul Singhal

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