Investment in India offers the attraction of a large and growing middle class, availability of skilled manpower including competent professional managers at moderate cost, a diversified domestic industrial base and well-developed capital markets, banking infrastructure and financial services.
The policy and regulatory environment in India is undergoing a radical change, opening up many more areas of business opportunities. There is a big push to liberalisation through new fiscal, trade, industrial and foreign investment policies. Curtailment in the areas reserved for public sector, major progress in elimination of licensing/quantitative restrictions, and simplification of procedures have been effected. The 1994 National Budget has seen a reaffirmation of the Government's commitment to further liberalisation of the Indian economy.
The Government is actively seeking foreign investment. Foreign exchange controls have been substantially reduced and the rupee made convertible on the trade and current accounts.Capital issues control has been relaxed. Price controls are being removed and interest rates have been largely deregulated. Most capital goods and raw materials/components required for industrial use may now be imported without a specific import licence. Fiscal policy reforms are continuing with custom duty/income tax rates being reduced/rationalised.
Non-resident Indians(NRIs) are offered a whole range of additional facilities such as tax concessions, relaxation of applicable foreign exchange controls in their case and higher foreign equity participation than is generally permissible.
The various measures taken by the Government since mid-1991 to reform the Indian economy has started showing results. Foreign and direct portfolio investment, which was hardly US$ 150million in 1991-92 is estimated to be more than US$ 4 billion in 1994-95. Indian foreign exchange reserves which had touched a low of a little over US$ 1 billion in mid-1991 are now around US$ 17 billion. Inflation rate is back in single digit after touching a peak of 17% in September 1991.
Industrial Licensing Policy
Foreign Tech. Agreements
Foreign Exchange Control
Provisions for NRI's OCB's