India’s New Simplified Fdi Policy Highlights
The Indian government has simplified some of the foreign direct investment policies that affect investment coming into the country. These changes are largely to be welcomed,and in the following article the items that are likely to affect the majority of foreign investors into India are outlined.
The general sectors now included in the 100 percent Foreign Direct Investment automatic route are:
* Advertising
* The film industry (financing,production,distribution,exhibition,marketing and related activities)
* Health and medical services
* Data processing,including software development,computer consultancy,software supply,business and management consultancy,market research,technical testing and analysis
* Research and development services (excluding awarding of certificates)
The infrastructure sector will permit 100 percent FDI automatic route in the following areas:
* Construction and maintenance of roads,rail-beds,bridges,tunnels,pipelines,rope ways,runways,waterways and reservoirs,hydroelectric plants,power plants,industrial plants
* Roads and highways on BOT and toll collection models;rural drinking water supply projects,package water treatment plants,rain and rain water harvesting,waste water recycling and re-use facilities
* Ports and harbor construction and maintenance of container terminals,bulk-break and specialized cargo berths,warehousing,container freight stations,storage facilities and tanks,captive power plants,dry docking and ship repair,and captive facilities for port-based facilities
Lastly,the power sector is also permitting 100 percent FDI automatic route in the following:
* Generation and transmission of electrical energy produced via hydroelectric,coal-ignition,thermal,oil based and gas based power plants
* Non-conventional energy generation and distribution
* Distribution of electricity to households and industrial and commercial users and power trading
About the Author
Chris Devonshire-Ellis wrote this story for the India business news website,India-Briefing.com. Chris Devonshire-Ellis also established the Asia Briefing Media publishing house,which publishes books and magazines regarding doing business in Asia.
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