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FOREIGN DIRECT INVESTMENT IN INDIA

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Title: FOREIGN DIRECT INVESTMENT IN INDIA


1
FOREIGN DIRECT INVESTMENT IN INDIA
  • Presentation by
  • Hitender Mehta
  • Sr. Associate Head
  • Vaish Associates Advocates
  • Gurgaon, India

1
2
GENERAL BACKGROUND
2
3
FOREIGN DIRECT INVESTMENT - PROHIBITED SECTORS
  • Foreign direct investment (FDI) is prohibited
    in the following cases
  • Gambling and Betting
  • Lottery Business
  • Retail Trading (except single brand retail
    trading-not provided in Master Circular)
  • Atomic Energy
  • Housing and Real Estates
  • Agriculture (with certain exceptions) and
    Plantations (Other than Tea plantations)

3
4
ROUTES FOR FOREIGN DIRECT INVESTMENT
  • Routes available for FDI
  • Automatic Route - No prior Government approval is
    required if the investment to be made falls
    within the sectoral caps specified for the listed
    activities. Only filings have to be made by the
    Indian company with the concerned regional office
    of the Reserve Bank of India (RBI) within 30
    days of receipt of remittance and within 30 days
    of issuance of shares
  • FIPB Route - Investment proposals falling outside
    the automatic route would require prior
    Government approval. Foreign Investment requiring
    Government approvals are considered and approved
    by the Foreign Investment Promotion Board
    (FIPB). Decision of the FIPB usually conveyed
    in 4-6 weeks. Thereafter, filings have to be made
    by the Indian company with the RBI

4
5
ROUTES FOR FOREIGN DIRECT INVESTMENT
  • CCFI Route - Investment proposals falling outside
    the automatic route and having a project cost of
    Rs. 6,000 million or more would require prior
    approval of Cabinet Committee of Foreign
    Investment (CCFI). Decision of CCFI usually
    conveyed in 8-10 weeks. Thereafter, filings have
    to be made by the Indian company with the RBI
  • - Investment proposals falling within the
    automatic route and having a project cost of Rs.
    6,000 million or more do not require to be
    approved by CCFI

5
6
PROPOSALS REQUIRING GOVERNMENT APPROVAL
  • Automatic Route is not available for the
    following proposals and Government approval has
    to be obtained
  • Proposals involving foreign investment by
    unincorporated foreign entities (Not Found in the
    Policy)
  • Proposals involving foreign investment being more
    than 24 in equity capital of units manufacturing
    items reserved for small scale industries
  • Proposals in which foreign collaborator has an
    existing joint venture or technology transfer
    /trademark agreement in the 'same' field in India
    (Press Note No.1 dated 12th January, 2005)

6
7
PROPOSALS REQUIRING GOVERNMENT APPROVAL
  • Press Note No.1 dated 12th January, 2005 applies
    to cases where the foreign investor has or had an
    existing joint venture or technology transfer
    agreement or trade mark agreement as of 12th
    January, 2005 in respect of another Indian
    company whose activity falls in the same field
    as that of proposed foreign investment
  • Wholly owned subsidiaries or branch are not hit
    by Press Note no. 1 (in so far as the mining
    sector is concerned, subject to a declaration
    from the applicant that he has no existing joint
    venture for the same area and/ or the particular
    mineral)
  • Press Note no. 1 will not apply where (a) the
    collaboration is defunct or (b) the shareholding
    in the existing joint venture of the foreign
    collaborator is less than 3 or (c) the foreign
    investment is by a venture capital fund or (d)
    the foreign investment is in the information
    technology sector or (e) the foreign investment
    is by a multinational financial institution or

7
8
PROPOSALS REQUIRING GOVERNMENT APPROVAL
  • (f) the foreign investment is in the mining
    sector subject to a declaration that there is no
    existing joint venture for the same area/
    particular mineral
  • To determine whether the activity is in the same
    field 4 digit National Industrial Classification
    (NIC) Code (1987 Series) is required to be seen
  • Whether Press Note no. 1 should be seen in the
    context of the activities of the holding company
    and its subsidiaries or only the holding company,
    is a grey area
  • (This is a comment by Mr. Daruwaala and not a
    part of any regulation/policy)

8
9
LIST OF INDUSTRIES FOR WHICH INDUSTRIAL LICENSING
IS COMPULSORY
  • Distillation and brewing of alcoholic drinks
  • Cigars and Cigarettes of Tobacco and Manufactured
    Tobacco substitutes
  • Electronic, Aerospace and defense equipment all
    types
  • Industrial explosives including detonating fuses,
    safety fuses, gun powder, nitrocellulose and
    matches
  • Hazardous chemicals
  • Drugs and Pharmaceuticals (according to modified
    Drug Policy issued in September, 1994 and
    subsequently amended in February, 1999)

9
10
RELATED EXCHANGE CONTROL REGULATIONS

10
11
EXCHANGE REGULATION
  • The Exchange Control Department of the RBI
    administers the Foreign Exchange Management Act
    (FEMA)
  • The general permission of the RBI is available
    for the following activities under FEMA
  • Indian Companies are permitted to issue
    Rights/Bonus shares subject to certain
    conditions
  • A company is permitted to issue shares to non
    residents pursuant to a scheme of merger/
    amalgamation provided the shareholding of the non
    resident shareholders does not exceed the
    sectoral caps

11
12
EXCHANGE REGULATION
  • A company may issue shares upto 5 of its paid up
    capital under Employee Stock Option Scheme, to
    its employees or employees of its joint venture
    or wholly owned subsidiary abroad, other than
    citizens of Pakistan and Bangladesh, who are
    resident outside India, directly or through a
    Trust, subject to Securities and Exchange Board
    of India (SEBI) regulations in this regard and
    within 30 days from the date of issue of shares
    the issuing company will report the details
    thereof and submit a stipulated certificate to
    the RBI
  • Indian Companies are allowed to raise foreign
    currency resources abroad through the issue of
    American Depository Receipts/ Global Depository
    Receipts (ADRs/GDRs) under the automatic route
    up to 49 subject to conditions prescribed in
    Press Note 5 of 2005 . Such investment are
    treated as FDI.

12
13
EXCHANGE REGULATION
  • All foreign investments are freely repatriable
    except in cases where nonresident Indians
    (NRIs) choose to invest specifically under
    non-repatriable schemes
  • Non-residents can sell shares on stock except
    (those those purchased by NRIs under PIS)
    without prior approval of RBI and repatriate the
    proceeds through a bank subject to deduction of
    applicable tax at source
  • Non-residents can sell shares to a resident
    through a private arrangement subject to
    necessary filings with the authorized dealer
  • Non resident can sell shares to a non resident
    through a private arrangement provided that the
    transferee company is not hit by Press Note No. 1
    of 2005

13
14
EXCHANGE REGULATION
  • Non-residents can purchase the shares from a
    resident through a private arrangement subject to
    necessary filings with the authorized dealer
    provided that the foreign investment in the
    Indian company is permitted under the automatic
    route
  • Foreign investment can be made only by cash
    contribution or capitalization of royalty/lump
    sum fee payable for technical know-how or
    conversion of foreign currency loans

14
15
SPECIAL CLASS OF FOREIGN INVESTORS
15
16
VENTURE CAPITAL FUNDS
  • SEBI registered foreign venture capital investor
    can invest in an Indian venture capital
    undertaking (IVCU) or venture capital fund
    (VCF)
  • It can purchase equity/equity linked
    instruments/debt instruments, debentures of an
    IVCU or VCF through initial public offer or
    private placement or in units of schemes/funds
    set up by VCF
  • The purchase/sale of shares, debentures and units
    can be at a price that is mutually acceptable to
    the buyer and the seller/issuer

16
17
FOREIGN INSTITUTIONAL INVESTOR
  • Foreign Institutional Investors (FIIs) can
    individually purchase upto 10 and collectively
    upto 24 of the paid-up share capital of an
    Indian company
  • This limit of 24 can be increased to sectoral
    cap/ statutory limit applicable to the Indian
    company by passing a board resolution/shareholder
    resolution
  • FIIs can purchase shares through open
    offers/private placement/stock exchange
  • Shares purchased by FII through stock exchange
    cannot be sold through a private arrangement

17
18
FOREIGN INSTITUTIONAL INVESTOR
  • Proprietary funds, foreign individuals and
    foreign corporates can register as a sub- account
    and invest through the FII. Separate limits of
    10 / 5 is available for the sub-accounts
  • FIIs can raise money through participatory notes
    or offshore derivative instruments for investment
    in the underlying Indian securities
  • FIIs in addition to investment under the FII
    route can invest under FDI route

18
19
NON RESIDENT INDIANS
  • General policy and facility for FDI available to
    NRIs
  • Following additional concessions specifically
    applicable to NRIs
  • NRI Investment in Construction Development
    Projects inclusive of housing sector upto 100
    wherein conditions prescribed under Press Note 2
    of 2005 are not applicable
  • NRI investment in domestic airlines sector upto
    100.
  • Further NRIs are permitted to invest on
    repatriable basis in partnership firms and
    proprietary concerns on prior approval of the
    Reserve Bank of India (Master Circular on Foreign
    Investment in India 01 July, 2006)

19
20
TECHNICAL COLLABORATION
20
21
TECHNICAL COLLABORATION
  • Foreign Technical Collaboration is permitted
    either through automatic route or with prior
    approval from the Government
  • Payment for foreign technology collaboration by
    Indian companies under automatic route subject to
    the following limits
  • Lump sum payment not exceeding USD 2 million
  • Royalty is subject to a ceiling of 5 per cent for
    domestic sales and 8 per cent for exports without
    any restriction on the duration of the royalty
    payments in case of such domestic sales/export
    being from a wholly owned subsidiary to an
    offshore parent company (Clause IV of Press Note
    9 of 2000).

21
22
TECHNICAL COLLABORATION
  • Royalty for use of trademark and brand name
    without technology transfer is allowed upto 2
    for exports and 1 for domestic sales.
  • In case of technology transfer, no separate
    royalty can be paid for trade marks brand name

  • Remittance upto USD 1 million per project for
    consultancy service procured from outside India
    is permitted under the automatic route

22
23
VALUATION, PRICING TRANSFER OF SHARES
23
24
VALUATION PRICING OF SHARES
  • Subscription of shares of a Indian company by a
    non- resident investor shall be at a price not
    less than
  • Price worked out in accordance with SEBI
    guidelines, where the issuing company is listed

  • Fair valuation of shares done by a Chartered
    Accountant as per the guidelines issued by the
    erstwhile Controller of Capital Issues, where the
    issuing company is unlisted
  • The above pricing guidelines will also apply to
    transfer of shares of an Indian company from a
    resident to a non resident

24
25
TRANSFER OF SHARES
  • Pricing guidelines do not apply in case of (a) a
    rights issue, (b) shares issued under the
    Employee Stock Option Scheme, (c) bonus shares,
    (d) shares issued pursuant to a scheme of
    amalgamation or de-merger and (e) shares acquired
    by foreign venture capital funds
  • Transfer of shares from non-resident to
    non-resident is not subject to pricing guidelines

  • Transfer of shares under a private arrangement by
    a non resident to a resident can be made at the
    ruling market price /- 5 (in case of listed
    companies) or at a price which is the higher of
    the price arrived at by two valuers, one of them
    being the auditor of the Indian company (in case
    of unlisted companies)

25
26
ENTRY STRATEGIES
26
27
ENTRY STRATEGIES FOR FOREIGN INVESTOR
  • Foreign Company has the following options to set
    up business operations in India
  • By incorporating a company under the Companies
    Act, 1956
  • A wholly owned subsidiary
  • Joint venture company - existing company or new
    company with domestic partner
  • As an unincorporated entity
  • Liaison Office
  • Project Office
  • Branch Office

27
28
LIAISON OFFICE
  • Liaison office not permitted to undertake any
    commercial/trading/industrial activity
  • The role of the liaison office is limited to
    collecting information about possible market
    opportunities and providing information about the
    company and its products to prospective Indian
    customers and acting as a communication channel
    between the parent company and Indian Companies.
  • It can promote export/import from/to India and
    also facilitate technical/financial collaboration
    between parent company/Group companies and
    companies in India
  • Approval for establishing a liaison office in
    India is granted by RBI

28
29
PROJECT OFFICE
  • General permission to foreign entities to
    establish Project / Site Offices (temporary in
    nature)
  • Such offices cannot undertake or carry on any
    activity other than the activity relating and
    incidental to execution of the project
  • General permission also for remitting surplus
    funds after completion of project on production
    of the following documents
  • Certified copy of the final audited project
    accounts
  • A Chartered Accountants certificate showing the
    manner of arriving at the remittable surplus

29
30
  • Income tax assessment order or other documentary
    evidence showing payment of income-tax and other
    applicable taxes, or a chartered accountants
    certificate stating that sufficient funds have
    been set aside for meeting all Indian Tax
    liabilities
  • Auditors certificate stating that no statutory
    liabilities in respect of the Project are
    outstanding.

30
31
BRANCH OFFICE
  • Foreign companies engaged in manufacturing and
    trading activities abroad are allowed to set up
    Branch Offices in India for specified purposes
  • Branch Offices are established with the approval
    of RBI
  • Permitted to remit outside India profit of the
    branch
  • No approval required from RBI for a company to
    establish a branch/unit in SEZs to undertake
    manufacturing and service activities

31
32
SPECIAL INVESTMENT AVENUES
32
33
ELECTRONIC HARDWARE AND SOFTWARE TECHNOLOGY PARKS
  • 100 percent foreign investment under automatic
    route is allowed in electronics and software
    industries set up exclusively for exports
  • Such units are eligible to purchase, free of
    customs duty/ excise duty, their entire
    requirement of capital goods, raw materials and
    components, spares and consumables, office
    equipments etc.
  • Income tax exemption on exports for a block of 10
    years of its operation under Section 10A and
    eligible up to Assessment Year 2009-10 (till
    31.03. 2009)
  • Such units are permitted to supply upto 50 of
    production in the domestic market in value terms
    subject to net foreign exchange earnings

33
34
  • Permission to issue of shares or convertible
    debentures to a person resident outside India in
    excess of 24 subject to specific sectoral caps
    on investments by person resident outside India.
    (Annexure 2 of Master Circular on Foreign
    investments in India Dated 1.07.2006)

34
35
EXPORT ORIENTED UNITS
  • 100 foreign equity (is permitted through
    Automatic Route similar to SEZ units) in Export
    Oriented Units (EOUs) even if it is
    manufacturing an item reserved for the small
    scale sector
  • Project with minimum investment of Rs.10 million
    and above in building, plant and machinery
    qualify to be considered under EOU scheme
  • - This shall not apply in case of certain
    industries like agriculture, floriculture,
    information technology, services, hand made
    jewellery, etc.
  • Goods and services exported from units in DTA and
    units in EOU, remission of service tax levied
    shall be allowed.
  • EOUs enjoy several privileges like duty exemption
    on import and domestic procurement and also
    Income tax exemption till 31.03. 2009
  • EOUs, other than gems and jewellary, are
    permitted to supply upto 50 of FOB value of
    exports in the domestic market, subject to
    fulfillment of positive NFE on payment of
    concessional duties.

35
36
  • 100 of the export earnings can be retained in
    EEFC A/C.
  • Exemption of Industrial Licensing for manufacture
    of items reserved for SSI sectors.
  • Exemption from payment of Income tax under
    Section 10A and 10 B of Income tax Act, 1961.
  • Permission to issue of shares or convertible
    debentures to a person resident outside India in
    excess of 24 subject to specific sectoral caps
    on investments by person resident outside India.
    (Annexure 2 of Master Circular on Foreign
    investments in India Dated 1.07.2006)

36
37
SPECIAL ECONOMIC ZONE
  • Special Economic Zone (SEZ) is deemed to be
    foreign territory for the purposes of trade
    operations and duties and tariffs
  • No cap on Foreign investment for manufacturing
    items reserved for SSI as well as exemption from
    industrial licensing
  • SEZ unit can be set up in the designated SEZ
    areas which is supported with all services and
    utilities
  • Unlike a EOU unit, an SEZ unit can be set up to
    undertake trading activities in addition to
    manufacturing of goods and rendering of services

37
38
SPECIAL ECONOMIC ZONE
  • No minimum investment criteria is applicable for
    establishment of units under the SEZ scheme
  • SEZ units have to be foreign exchange positive
  • On exports, SEZ units entitled to 100 income tax
    exemption for first five years, 50 income tax
    exemption for the next five years and 50 income
    tax exemption for the next five years subject to
    creation of reserves
  • For the Domestic Tariff Area (DTA) units, goods
    and services going into SEZ area are treated as
    exports and goods coming from the SEZ area into
    the DTA are treated as imports

38
39
SPECIAL ECONOMIC ZONE
  • No excise duty or customs duty or service tax is
    applicable for supply of goods from outside
    India/ within India to a SEZ unit
  • State Governments are passing legislations for
    relaxing the applicability of labor laws,
    providing exemption/ reduction in the stamp duty,
    etc. for SEZ units
  • Exemption from capital gains tax on transfer of
    assets in cases of shifting of industrial
    undertaking from urban area to any SEZ under
    Section 54GA of Income Tax Act, 1961.

39
40
  • Foreign companies can set up branch operations in
    the SEZ in accordance with provisions of Foreign
    Exchange Management (Foreign exchange derivatives
    contracts) Regulations, 2000.
  • Developer and entrepreneur entitled to exemption
    from the securities transaction tax leviable
    under section 98 of the Finance (No.2) Act, 2004
    in case the taxable securities transactions are
    entered into by a non-resident through the
    International Financial Service Centre.

40
41
FDI
  • SECTORAL GUIDELINES

41
42
AIRPORTS
  • Foreign Investment upto 100 is allowed in green
    field projects under automatic route
  • Foreign Direct Investment is allowed in existing
    projects
  • - upto 74 under automatic route
  • - beyond 74 and upto 100 subject to Government
    approval

42
43
TELECOM
  • FDI in basic and cellular, unified access
    services, national/ international long distance,
    V-Sat, public mobile radio trunk services
    (PMRTS), global mobile personal communications
    services (GMPCS), other value added telecom
    services and ISP with gateways
  • - Automatic upto 49
  • - FIPB beyond 49 but upto 74 (this limit is
    inclusive of FII, NRI, FCCBs, ADR,GDR,
    Convertible preference shares and proportionate
    foreign equity in Indian promoters/Investing
    companies) subject to guidelines notified in the
    PN 5 (2005 Series).
  • ISP with gateways, radio paging, end-to-end
    bandwidth
  • - Automatic up to 49
  • - FIPB beyond 49 up to 74 (Subject to
    licensing and security requirements notified by
    the Department of Telecommunications)

43
44
  • ISP without gateway, infrastructure provider
    providing dark fibre, electronic mail and voice
    mail
  • - Automatic upto 49
  • - FIPB beyond 49 but upto 100 (Subject to the
    condition that such company shall divest 26 of
    their equity in favor of Indian public in 5
    years, if these companies are listed in other
    parts of the world. They are also subject to
    licensing and security requirements, where
    required)
  • Manufacture of telecom equipments - Automatic
    upto 100 (Subject to sectoral requirements).

44
45
DOMESTIC AIRLINES
  • FDI upto 49 (40) permitted under automatic
    route
  • Automatic Route is not available
  • However, a foreign airlines are not allowed to
    have any direct or indirect equity participation
  • 100 investment by NRIs/OCBs

45
46
DRUGS PHARMACEUTICALS
  • FDI upto 100 is permitted under the automatic
    route for manufacture of drugs and
    pharmaceuticals (The following is the current
    position)
  • i. FDI upto 74 in the case of bulk drugs, their
    intermediates Pharmaceuticals and formulations
    (except those produced by the use of recombinant
    DNA technology) would be covered under automatic
    route.
  • ii. FDI above 74 for manufacture of bulk drugs
    will be considered by the Government on case to
    case basis for manufacture of bulk drugs from
    basic stages and their intermediates and bulk
    drugs produced by the use of recombinant DNA
    technology as well as the specific cell/tissue
    targeted formulations provided it involves
    manufacturing from basic stage.

46
47
INSURANCE
  • FDI upto 26 allowed on the automatic route
  • However, license from the Insurance Regulatory
    Development Authority (IRDA) has to be obtained
  • There is a proposal to increase this limit to
    49(Not found any data to substantiate this
    statement)

47
48
MINING
  • Coal Lignite mining for captive consumption by
    power projects, and for iron steel and cement
    production - Automatic upto 100
  • Mining covering exploration and mining of
    diamonds and precious stones, gold, silver and
    minerals - Automatic upto 100
  • Subject to Mines Minerals (Development and
    Regulation) Act, 1957.
  • Press Note 18 (1998) and Press Note 1 (2005) are
    not applicable for setting up 100 owned
    subsidiaries in so far as the mining sector is
    concerned, subject to a declaration from the
    applicant that he has no existing joint venture
    for the same area and/or the particular mineral.

48
49
PETROLEUM
  • Petroleum and natural gas sector, other than
    refining and including market study and
    formulation setting up infrastructure for
    marketing - Automatic upto 100
  • For petroleum refining activity 100 FDI is
    permitted in Indian Private Companies under
    automatic route and upto 26 FDI is permitted in
    Public Sector Undertakings with Government
    approval

49
50
PRIVATE SECTOR BANKING
  • Foreign Investment upto 74 is permitted from all
    sources (FDI FII) under the automatic route
    subject to guidelines for setting up of
    branches/subsidiaries of foreign banks issued by
    RBI from time to time.

50
51

TRADING
  • Wholesale / cash carry trading - Automatic upto
    100
  • Trading for exports - Automatic upto 100
  • Trading of items sourced from small scale sector
    - 100 with Government approval
  • Test marketing of such items for which the Indian
    company has approval for manufacture - 100 with
    Government approval
  • Single Brand product retailing - 51 with
    Government approval

51
52

HOUSING, REAL ESTATE TOWNSHIP DEVELOPMENT
  • FDI under the automatic route is allowed upto
    100 in townships, housing, built-up
    infrastructure and construction development
    projects subject to conditions notified vide
    Press Note 2 (2005 Series) including
  • a. minimum capitalization of US 10 million for
    wholly owned subsidiaries and US 5 million for
    joint venture. The funds would have to be brought
    within six months of commencement of business of
    the Indian company
  • b. Minimum area to be developed under each
    project- 10 hectares in case of development of
    serviced housing plots and built-up area of
    50,000 sq. mts. in case of construction
    development project and any of the above in case
    of a combination project

52
53
HOUSING, REAL ESTATE TOWNSHIP DEVELOPMENT
  • The conditions notified vide Press Note 2 (2005
    Series) do not apply to NRIs./OCBs are allowed
    to invest upto 100 under automatic route in
  • Development of serviced plots and construction of
    built up residential premises
  • Investment in real estate covering construction
    of residential and commercial premises including
    business centers and offices
  • Development of townships
  • City and regional level urban infrastructure
    facilities,including both roads and bridges
  • Investment in manufacture of building materials,
    which is also open to FDI
  • Investment in Participatory Ventures in the areas
    mentioned above
  • Investment in Housing Finance Institutions

53
54
PRINT MEDIA
  • FDI upto 100 in publishing/printing scientific
    technical magazines, periodicals journals
  • FDI upto 26 in publishing news papers and
    periodicals dealing in news and current affairs
    subject to verification of antecedents of foreign
    investor and keeping editorial and management
    control in the hands of resident Indians
  • All investments are subject to the guidelines
    issued by the Ministry of Information and
    Broadcasting
  • (No FDI/NRI/OBC investment is permitted)

54
55
BROADCASTING
  • FDI permitted for setting up hardware facilities
    such as up-linking, HUB, etc upto 49 under
    Government approval route
  • FDI permitted in Cable Network upto 49 under
    Government approval route
  • Foreign Investment (FDI/FII) upto 49 allowed
    under Government approval route in Direct to Home
    Service Providers. FDI limited to 20
  • FDI permitted in FM radio upto 20 under
    Government approval route
  • (No FDI/NRI/OBC investment is permitted)

55
56
INFRASTRUCTURE
  • 100 FDI is permitted for the following
    activities
  • Electricity Generation (except Atomic energy)
  • Electricity Transmission
  • Electricity Distribution
  • Mass Rapid Transport System
  • Roads Highways
  • Toll Roads
  • Vehicular Bridges
  • Ports Harbors
  • Hotel Tourism
  • FDI in Investing companies in infrastructure/servi
    ce sector (except telecom sector) will not be
    counted towards sectoral cap provided
  • - Such investment is up to 49
  • - The management of the company is in
    Indian hands.
  • FDI in such companies will be through the
    FIPB route

56
57
Illustrative List of Sectors Under Automatic
Route for FDI upto 100
  • Most manufacturing activities
  • Non-banking financial services
  • Drugs and pharmaceuticals
  • Food processing
  • Electronic hardware
  • Software development
  • Film industry
  • Advertising
  • Hospitals
  • Pollution control and management
  • Management consultancy
  • Computer related Services

57
58
Illustrative List of Sectors Under Automatic
Route for FDI upto 100
  • Research and Development Services
  • Construction and related Engineering Services
  • Pollution Control and Management Services
  • Health related Social Services
  • Travel related services

58
59
ADVANTAGES INDIA
  • Stable democratic environment over 55 years of
    independence
  • Large and growing market
  • World class scientific, technical and managerial
    manpower
  • Cost-effective and highly skilled labor
  • Abundance of natural resources
  • Large English speaking population

59
60
ADVANTAGES INDIA
  • Well-established legal system with independent
    judiciary
  • Developed banking system and vibrant capital
    market
  • Well developed accountancy, legal, actuarial and
    consultancy profession
  • Surveys by leading organizations rate India
    among the top three investment hot spots and one
    of the fastest growing economies in the world

60
61
THANK YOU
61
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