India - with its consistent growth performance and abundant highly skilled manpower provides enormous opportunities for investments. The economy of India is the seventh-largest economy in the world measured by nominal GDP and the third-largest by purchasing power parity (PPP)
- India has a federal system of Government with clear demarcation of powers between the Central Government and the State Governments.
- India provides a liberal, attractive, and investor friendly investment climate.
- India has the most liberal and transparent policies on foreign direct investment (FDI) among major economies of the world.
- 100% FDI is allowed under the automatic route in all sectors/activities except in few areas, which require prior approval of the Government.
- Under automatic route, investors are required to only notify the Reserve Bank of India within 30 days of receipt of inward remittances.
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- India has liberalized and simplified foreign exchange controls.
- Rupee is freely convertible on current account.
- Rupee is almost fully convertible on capital account for non-residents.
- For FDI- Profits earned, dividends and proceeds out of the sale of investments are fully repatriable.
- There are some restrictions for resident Indians on capital account on incomes earned in India.
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- Indian economy’s growth for 2016-17 fiscal is still robust at 7% despite demonetisation. India is expected to regain momentum with 7.6% growth in 2018 and 7.8% growth in 2019.
- Economy grew by 7.6% in 2015-16
- Exports grew at its fastest pace in five years by 4.7% to $274.65 billion during the financial year 2016-17
- Imports grew even faster at 45.3% to $39.67 billion in March 2017
- Foreign Direct Investment (FDI) inflows in India’s manufacturing sector grew by 82 per cent year-on-year to US$ 16.13 billion during April-November 2016.
- The services sector is expected to grow at 8.8 per cent in 2016-17, similar to 2015-16
- India has a young demography and is expected to be World’s youngest country by 2020, with an average age of 29 years
- High economic growth and rising per capita income has resulted in high growth in the domestic market, which is the prime growth engine for Indian economy
Government of India accords high priority to development of infrastructure in highways, ports, railways, airports, power, telecom, etc. Government is actively seeking domestic and foreign private investment, for infrastructure sector development. This web site provides information for a foreign investor looking to do business in India and the site provides links to various web sites maintained by Central and State Governments.
A link to Manual on FDI of Department of Industrial Policy and Promotion provides information about India’s FDI policy, Exchange control regulations, formation of a company etc.http://dipp.nic.in/
