Foreign Direct Investment in India
Top 10 Sectors Attracting Highest FDI Equity Inflows for the year 2012-13 (April-December)
1. Services Sector (Financial & Non-Financial)
2. Construction Development: Townships, Housing, Built-Up Infrastructure 3. Telecommunications (Radio Paging, Cellular Mobile, Basic Telephone Services) 4. Computer Software & Hardware 5. Drugs & Pharmaceuticals 6. Chemicals (other than fertilizers) 7. Power 8. Automobile Industry 9. Metallurgical Industries 10. Hotel & Tourism |
19%
12% 7% 6% 5% 5% 4% 4% 4% 3% |
% age to total Inflows (in terms of US$)
India has not only opened its doors to foreign investors but has also attracted many by making investing easier for them by implementing the following measures:
● Foreign exchange controls have been eased on the account of trade.
● Companies can raise funds from overseas securities markets and now have considerable freedom to invest abroad for expanding global operations.
● Foreign investors can remit earnings from Indian operations.
● Foreign trade is largely free from regulations, and tariff levels have come down sharply in the last two years.
As the industry progresses, opportunities abound in India, which has the world's largest middle class population of over 300 million, is attracting foreign investors by assuring them good returns. The scope for foreign investment in India is unlimited. India offers to foreign investors a well-balanced package of fiscal incentives for exports and industrial investments that includes:
● Complete tax exemptions.
● Investment incentives are offered by both the Central Government and the Government of the State in which the unit is located.
● India has tax treaties with 40 countries.
● Foreign exchange controls have been eased on the account of trade.
● Companies can raise funds from overseas securities markets and now have considerable freedom to invest abroad for expanding global operations.
● Foreign investors can remit earnings from Indian operations.
● Foreign trade is largely free from regulations, and tariff levels have come down sharply in the last two years.
As the industry progresses, opportunities abound in India, which has the world's largest middle class population of over 300 million, is attracting foreign investors by assuring them good returns. The scope for foreign investment in India is unlimited. India offers to foreign investors a well-balanced package of fiscal incentives for exports and industrial investments that includes:
● Complete tax exemptions.
● Investment incentives are offered by both the Central Government and the Government of the State in which the unit is located.
● India has tax treaties with 40 countries.