Tag Archives: FDI

Indian Gov’t Boosts Export Incentives

The Indian government announced a variety of measures to boost India’s exports, including added benefits to special economic zones (SEZs), and a slew of incentives for exporters. Continue reading

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Government Raises FDI Limit in Asset Reconstruction Companies

Due to the increasing demand for these companies’ services and to certain macroeconomic trends, the foreign direct investment (FDI) limit in ARCs has been increased to 74 percent. The government previously limited FDI in ARCs to 49 percent. It is hoped that this revision will bring greater foreign expertise into the segment. Continue reading

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Key Sectors of FDI in India: Roads and Railways

Apr. 11 – The Indian government has clearly indicated that infrastructure development remains the nation’s top priority. Recognizing that a steady supply of power along with efficient transport infrastructure will help revive the Indian economy and boost productivity, the government has set up plans to increase gross capital in infrastructure over the next several years to over US$500 billion worth of investments. Given that the agriculture sector is well protected under current governmental policy regulations, and that the services sector is already well established through IT, business processing offices (BPO) and banking, infrastructure development is a critical area for opportunity. The government

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India Set To Lift FDI Caps?

Mar. 20 – India’s Finance Minister P. Chidambaram has stated that India is likely to lift “outdated” caps to areas of foreign direct investment (FDI). He affirmed that the country needs to clean out the cobwebs accumulated in India in order to spur foreign investment into the country. “Many caps can be removed or certainly relaxed,” he stated last Friday in an interview with the Khaleej Times, saying that a review of limits across all sectors of FDI into the country had begun. If delivered, such a review could usher in the largest relaxation of FDI policies the country has

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India to Define Minimum Stake in Joint Ventures

The expected definition of a joint venture under a new draft of the consolidated FDI policy will raise the minimum level of investment each party must take to 25 percent. Continue reading

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India Further Liberalizes FDI Policy, Drops Mandatory Lock-In Period

The Indian government is loosening its FDI regulations and is now allowing foreign investors the opportunity to repatriate their original investment before the expiration of a three-year lock-in period from the day it completes its minimum capitalization norm for the sector. Continue reading

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