#FDIPolicies

[alishajoy059]

Explore how Foreign Direct Investment (FDI) fuels India's economic growth. Learn about FDI policies, investment routes, key sectors, and recent trends. Discover how CompaniesNext can assist with your FDI needs.

[ibeforg]

Top Sectors Attracting Foreign Investment in India

India's foreign direct investment growth is surging! From April 2000 to September 2024, the service sector led with a 16.0% FDI equity inflow worth US$ 115.18 billion. The computer software and hardware industry followed at 15.0% with US$ 107.07 billion.

India foreign investment 2024 also soared in trading (7.0%), telecommunications (6.0%), and automobiles (5.0%). Want to know what’s next? India Brand Equity Foundation covers the latest insights!

[indextrader]

Government role in indian stock market?

The government plays a crucial role in monitoring the Indian stock market through various regulatory bodies, policies, and legislative frameworks. Here’s a detailed overview of how the government ensures the proper functioning and integrity of the stock market: Regulatory Bodies 1. Securities and Exchange Board of India (SEBI): Regulation and Supervision: SEBI is the primary regulator for the…

[yojinvestment]

Nepal offers a unique investment landscape marked by opportunities and challenges for foreign investors. This blog explores the current state of foreign direct investment (FDI) in Nepal, shedding light on the sectors with the highest growth potential. Understand the regulatory framework, the incentives provided by the government, and the obstacles that investors might face when entering the Nepalese market.

[companiesnext1]

This article explores key considerations for foreign startups looking to expand into the Indian market. Covering entry options, foreign investment policy, taxation, dispute resolution, and labor laws, it provides insights into the legal landscape. From understanding diverse business structures to navigating regulatory compliance, the article aims to guide foreign entrepreneurs through the complexities of establishing a successful presence in India

[learnhindimai]

सरकार ने FDI Policy में किया बदलाव जानिये क्या है नये नियम !! https://bit.ly/2VzLt2b

आज हम भारत के आर्थिक राष्ट्रवाद के बारे में बात कर रहे हैं जब तक दुनिया के बड़े-बड़े देश कोरोना वायरस को कंट्रोल करेंगे तब तक चीन उनकी अर्थव्यवस्था को control कर चुका होगा

[jffc-in-blog]

India soon to unveil hybrid instruments to boost startups, Technology News, ETtech

http://bit.ly/2wgIr8s # CompaniesAct, #Boost, #ETtech, #FdiPolicy, #Government, #Hybrid, #HybridInstruments, #India, #IndianGovt, #Instruments, #News, #PwC, #StartupFunding, #Startups, #Technology, #Unveil, #VentureCapital

[alishajoy059]

In India, various business registrations like GST, PAN, and TAN are essential. Additional approvals from SEBI, RBI, FSSAI, and other authorities may be needed based on business activities. Compliance ensures smooth operations and legal adherence, promoting ease of doing business.

[kpalegal]

CHANGE IN THE FDI POLICY

Revision of FDI Policy

With an aim to restrict opportunistic takeovers or acquisitions of Indian companies owing to the ongoing COVID-19 pandemic, Indian Government revised the Foreign Direct investment(FDI) policy on 18th April, 2020. Countries sharing land borders with India or where the beneficial owner of an investment into India is settled or citizen of any such country, will be able to invest under the Government route. Simply put, this policy requires Government approval by investors from the neighboring countries to invest in Indian companies. Even when there is a further change in the beneficial ownership in the case where any existing or future FDI’s (in an entity in India) ownership is transferred, whether directly or indirectly, coming under the above mentioned restriction or purview will need government’s approval.Earlier, the government route was only meant for Bangladesh and Pakistan in such matters. Moreover, Pakistan was and is still allowed to invest only under the Government Route and that too in sectors or activities apart from space, defence, atomic energy and sectors/activities forbidden for foreign investment.The amendments in the FDI policy will be enforced from the date of the FEMA notification. In addition, it needs to be noted that these amendments are not only with respect to fresh FDIs but also for existing FDIs.[1]

Reason Behind the Expeditious Revision

The Indian Government’s move of amending the FDI policy is being viewed as an approach to control the investments coming from China and to prevent the threat of the Chinese takeover of Indian companies due to the adverse impact of COVID-19 on the valuation of the Indian companies. One of the few reasons behind this could be the increase of its stake in the home lender by the Chinese Central Bank, the People’s Bank of China (PBOC) from 0.8% to 1.01% in the March quarter by way of open market purchases. Some of the other countries such as Spain, Australia, Germany, Italy etc. have set up similar restrictions.[2]

However, this step taken by the Indian Government is also being questioned considering the negative impact on Indian Startups as China has been a consistent source of capital.[3]Furthermore, the withdrawal of the automatic route for neighboring countries could increase the approval time for the transactions.

China’s Response to the Revision

China has accused India of breaching the World Trade Organization (WTO) principles of organization and that this revision is contrary to free and free trade. Moreover, China has put forward a demand to revise the amendments made in the FDI policy on 18th April, 2020.[4]

India’s Response to the Accusation Made by China

The accusation made by China has been refused by stating that the amendments in the FDI policy are “not denial” of permission. The top government sources also said that it just involves an approval process and hence there is no kind of violation.[5]

Originally posted on www.kpalegal.com on 3rd May 2020

[1]https://dipp.gov.in/sites/default/files/pn3_2020.pdf

[2]https://www.moneycontrol.com/news/business/startup/fdi-policy-change-while-taming-the-dragon-india-might-be-harming-its-baby-elephants-5163181.html

[3]https://www.livemint.com/

[4]https://www.ndtv.com/india-news/new-fdi-rules-not-a-violation-of-wto-principles-its-only-an-approval-process-government-sources-on-c-2215349

[5]https://www.ndtv.com/india-news/new-fdi-rules-not-a-violation-of-wto-principles-its-only-an-approval-process-government-sources-on-c-2215349