Foreign direct investment in India

As the third largest economy in the world in terms of PPP, India is undoubtedly one of the most preferred destinations for foreign direct investment (FDI) India has strength in information technology and other important areas, such as automotive components, chemicals, De clothing, pharmaceuticals and jewellery. India has always held promise for global investors but its strict policy on FDI is a significant obstacle in this regard. However, following a series of ambitious economic reforms and positive step towards deregulation of the economy and stimulate foreign investment, India has positioned itself as one of the front-runners of the rapidly growing Asia-Pacific region. India is a vast reservoir of managerial skills and technical expertise. The size of the middle class population is more than 300 million people in both the United States and the EU, and represents a powerful consumer market.

India has recently liberalized FDI policy (2005) allows a maximum of 100% of the capital of FDI enterprises. Industrial policy reforms have substantially reduced the requirements for licensing industrial removed restrictions on the expansion and facilitated easy access to foreign technology and foreign direct investment FDI. Moving up the growth curve estate needs some credit for a booming economy and the liberalization of the regime of foreign direct investment. In March 2005, the government changed the rules to allow 100 percent FDI in the construction sector. This automatic route was allowed in townships, housing, built-up areas of infrastructure and construction of development projects, including housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, and the city at local and regional level infrastructure.