Doing business with India
The Indian Government is committed in its efforts to maintain healthy growth rate and provide a conducive policy environment to the enterprises, both public and private, to invest and grow their business in the country.
India – with its consistent growth performance and abundant, skilled manpower provides enormous opportunities for investments. India provides a liberal, attractive, and investor-friendly investment climate.
Higher disposable incomes, emerging middle class, low cost competitive workforce, investment friendly policies and progressive reform process all contribute towards India being an appropriate choice for investors.
India has the most liberal and transparent policies on foreign direct investment (FDI) among major economies of the world. India’s foreign trade policy has been formulated with a view to invite and encourage FDI in India.
- 100% FDI is allowed under the automatic route in all sectors/activities except in a 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.
India has liberalized and simplified foreign exchange controls.
- The Rupee is freely convertible on current accounts.
- The Rupee is almost fully convertible on capital accounts for non-resident.
- For FDI – Profits earned, dividends and proceeds from the sale of investments are fully repatriable.
The Indian economy has been growing at an average growth rate of about 8.8% p.a. over the last three years; the growth rate in 2006-07 was 9.4%, the growth rate in 2007-08 was 9.3% and the growth rate in 2008-09 was 7.8%.
- Imports in 2008-09 grew by 24.7% and exports by 7.3%
- The manufacturing sector grew by 4.1% and services by 9.6% during 2008-09.
- India has a large middle class and 55% of its population is below the age of 25.
- High economic growth and rising per capita income has resulted in high growth in the domestic market, which is the prime growth engine for the Indian economy.
The Government of India accords high priority to the development of infrastructure in highways, ports, railways, airports, power, telecom etc. The Government is actively seeking domestic and foreign private investment, for infrastructure sector development.