Foreign Investment Policy Direction


The Government in last three years has undertaken a number of reforms in different areas of economy. In this regard FDI policy reforms carried out by Government are nothing less than historic. The scale of reforms can be gauged from the fact that during this period, 21 sectors covering 87 areas of FDI policy have undergone reforms.This has resulted in increased FDI inflows which year after year is setting up new records. If the FDI inflows of US Dollar 55.6 billion for the year ending March, 2016 werean all-time high, the record was not meant to last long. The country registered FDI inflow of US Dollar 60.08 billion in the next financial year (2016-17), thereby scaling an even higher peak.


Steps Involved in Investment


Identification of structure
Central Government approval if required
Setting up or incorporating the structure
Inflow of funds via eligible instruments and following pricing guidelines
Meeting reporting requirements of RBI and respective Act
Registrations/obtaining key documents like PAN etc.
Project approval at State/UT level
Finding ideal space for business activity based on various parameters like incentives, cost, availability of man power etc.
Manufacturing projects are required to file Industrial Entrepreneur’s Memorandum (IEM), some of the industries may also require industrial license.
Construction/renovation of unit.
Hiring of manpower.
Obtaining licenses if any.
Other state & central level registrations.
Meeting annual requirements of a structure, paying taxes etc.