Doing business in India offers enormous opportunities for Foreign companies. However, India is a large and complex market. It should not be seen as one market, but a series of interconnected regional markets where the legislative and investment climate may change from one state to another.
It is wiser to be in India now…
- Fastest growing economy in the world
(Current: 7% , by 2018: 7.8%)
- World’s third largest economy
(Would double in size to US$ 4–5 trillion in a decade)
- Taxes on companies has been reduced to 25%
(For companies with annual turnover less than 50 Crores)
- World’s second-largest telecommunication market
(1058.86 million subscribers)
- By 2020, retail market is expected to grow to US$ 1.1 trillion
(growing at a high rate of 20%-25% p.a.)
- World’s sixth largest pharmaceutical market by 2020
- By 2050, India will have added 300 million people
- Working age group will be more than 64% by 2021
(15-59 years)
- Growing urban markets
(23.1 Million people shifting from rural to urban areas in two decades)
- Low labour costs
(Total labour force of nearly 530 million)
- Purchasing power parity, India’s economy is third largest in the world
(Current-$ 8.7 trillion, by 2025-$ 20 trillion )
Foreign Direct Investment into India
Automatic Route
- All sectors other than sectors which are specifically prohibited or under approval route
- Should comply with sector based investment and other conditions (i.e. sectoral caps)
Approval Route
100% FDI through Government approval route
- Extraction of titanium
- Publishing of scientific & technical magazines/specialty journals/ facsimile
- Edition of foreign newspapers
- Satellites (establishment & operation)
- Pharmaceuticals (Brownfield)
100% FDI: Government approval required beyond 49%
- Telecom Services
- Broadcasting Carriage Services
- Single Brand product retail trading
100% FDI: Government approval required beyond 74%
- Existing projects of Airport
49% FDI : No Government approval required
- Infrastructure Company in the Securities Market
- Insurance
- Pension Sector
- Power Exchanges
- Defense
- Air Transport Services (Scheduled): 100% for NRI
49% FDI through Government approval route
- Broadcasting Content Services (except Up-linking & Down-linking
of Non-‘News & Current Affairs’ TV Channels)
- Private Security Agencies
FDI limits less than 100%
- Banking (Private Sector): 74% FDI is allowed. However,
Government approval is required beyond 49%
- Banking (Public Sector): 20% FDI is allowed with Government
approval
- Multi Brand product retail trading: 51% FDI is allowed with
Government approval
- Print Media: 26% FDI is allowed with Government approval
If you have any query regarding this Click Here
Connect with us +91 966 777 9615
