Indian markets, across all industries, are considered as viable long-term investment options as the country stands strong amid global financial turmoil. India is considered to be the third most favoured destination for investment after China and the US for major global companies, according to UNCTAD's World Investment Report 2012. The report anticipates that foreign investments in India could increase by over 20 per cent in 2012-13.
The foreign direct investment in India can easily be made in a variety of ways, through the Governmental and automatic routes. However, the joint ventures (JV) are the most popular and preferred forms of making investment in Indian industry.
The Government has recently cleared 14 foreign direct investment proposals worth Rs 113.35 crore based on the recommendations of Foreign Investment Promotion Board (FIPB). Major proposals include an equity increase of Rs 68.22 crore by the UK-based Dashtag to conduct business of pharmaceuticals specialising in dermatology, anti-histamines, antibiotics and oncology products.
Some of the major foreign direct investments in India are:
In case of civil aviation, the Government has allowed foreign carriers to buy up to 49 per cent stake in their Indian counterparts.
Further, to sustain the momentum of the above stated reforms, the Government would take more decisions to create investment options for overseas investors. The measures being considered include raising the ceiling for foreign borrowings, easing curbs on portfolio investors, and liberalising norms for overseas borrowings.
Foreign Direct Investments in India
In recent years, bulk of the foreign direct investments in Indian business sectors of infrastructure, telecommunication, information technology, computer hardware and software, and hospitality services, have been made by investors of countries like US, UK, Mauritius, Singapore, and many others.The foreign direct investment in India can easily be made in a variety of ways, through the Governmental and automatic routes. However, the joint ventures (JV) are the most popular and preferred forms of making investment in Indian industry.
The Government has recently cleared 14 foreign direct investment proposals worth Rs 113.35 crore based on the recommendations of Foreign Investment Promotion Board (FIPB). Major proposals include an equity increase of Rs 68.22 crore by the UK-based Dashtag to conduct business of pharmaceuticals specialising in dermatology, anti-histamines, antibiotics and oncology products.
Some of the major foreign direct investments in India are:
- Japanese auto major Nissan intends to introduce 10 new passenger car models by the end of March 2016 in a bid to boost its volumes in India. The company also aims to double its vehicle sales in 2012-13
- United Nations Industrial Development Organisation (UNIDO), Austria has appointed Ramky Enviro Engineers Limited (REEL) as its strategic partner to work on a project for the Bhilai Steel plant
- Mahindra Finance's subsidiary Mahindra Insurance Brokers (MIBL) has formed a venture with LeapFrog Investments wherein the latter's subsidiary, Inclusion Resources Singapore, would infuse Rs 80.41 crore for a 15 per cent stake in MIBL
Major reforms in foreign direct investments in India
The Government of India has given its nod to 51 per cent foreign direct investment in multi-brand retail. The decision will pave way for retail giants like Walmart, Tesco and IKEA to enter into Indian market and make footprints in the US$ 450 billion retail industry. Moreover, the Government has relaxed sourcing norms for single-brand retailers and has permitted them to buy at least 30 per cent of the goods from Indian industry, rather than particularly from Indian small and medium enterprises (SMEs) as per earlier stipulation.In case of civil aviation, the Government has allowed foreign carriers to buy up to 49 per cent stake in their Indian counterparts.
Further, to sustain the momentum of the above stated reforms, the Government would take more decisions to create investment options for overseas investors. The measures being considered include raising the ceiling for foreign borrowings, easing curbs on portfolio investors, and liberalising norms for overseas borrowings.
Comments