FDI Notifications - An Anthology

Foreign Direct Investment (FDI) is the buzz word. Increasingly, infl ow of FDI is synonymous with the growth of an economy. Slowly shedding its protectionist, socialist approach coupled with the realization that capital and technology starved industries cannot grow, leave alone compete with global giants, the Indian government initiated its liberalization process in 1991. The tremendous growth of the last 15 years has surprised the world. India is the new Asian Tiger, its middle class is recognized at number seven of Fortune 500s “Movers and Shakers” list. And, its about time! Absence of a comprehensive guide to FDI in India containing the current rules and procedures required to be complied with by investors pre/post investment necessitated the writing of this book, which fi lls a large vacuum by focusing on and compiling all the latest applicable government policies and procedures. This book traces the evolution of the FDI policy over the years and tracks the culmination of slow, small steps of the government during the early 1990s into giant leaps today. The chapters explain exhaustively the routes and structures available for FDI in India and describe the benefi ts accorded to investors in the form of specialized tax havens for nurturing projects. Technology is the essence of a business and constant change is the need of the hour. The book also spells out government policies and key considerations to be kept in mind by foreign collaborators before parting with technology in a world when protection and control of core intellectual property rights assumes critical signifi cance. Some key sectors for investments along with their sector-specifi c guidelines, signifi cant issues during disinvestment by certain class of re-recognized investors as well as the regulatory compliances to be done with the Reserve Bank of India not only in cases of transfer or issue of equities but also for progressive capitalization and funding of the business enterprises is the focus of the different chapters