Foreign Investment
Foreign investment in India is encouraged and a fair number of
foreign companies have established operations in the country. Under the
New Industrial Policy, 1991 (amended from time to time), the Government of
India has opened up most sectors for 100% foreign investment. Sectors such
as banking, telecommunications, print media, etc. are still restricted to
a certain extent.
As per recent changes, joint ventures and collaborations falling within
the 100% foreign investment category do not require the prior approval of
the Reserve Bank of India. All that they need to do is to intimate the
Reserve Bank of India, once the foreign investment is made. In the
restricted sectors, specific permission of the Foreign Investment
Promotion Board ("FIPB"), Ministry of Industries is required. Our firm
advises foreign entities on issues relating to collaborations and
investments in India.
