|Foreign Direct Investment|
India is the fourth largest economy in the world and offers considerable scope for Foreign Direct Investment in various sectors of business. The Government of India having recognized the potential the country offers for Foreign Direct Investment has deregulated the economy and offers stimulating opportunities to attract Foreign Direct Investment into the country. The Government of India has initiated the liberalized economic reforms from July 1991 and has been constantly working towards providing liberalized and easy investment opportunities for Foreign Direct Investment.
Foreign Direct Investment in India is allowed on the Automatic Route in almost all sectors except in certain cases like proposals that require an industrial license, cases where the foreign collaborator has a previous venture/tie up in India, proposals relating to acquisition of shares in an existing Indian company by an overseas corporate body investor and proposals falling outside the sectoral policy and Automatic Route. Foreign Direct Investment is permitted in sectors falling outside the Automatic Route through the Approval Route of the Foreign Investment Promotion Board. Lex Valorem is well versed in the provisions and regulations of the Foreign Exchange Management Act, 1999 (FEMA) and especially as relating to foreign investment in India. Lex Valorem constantly up dates itself on all regulations, modifications, amendments, etc. notified by the Government of India from time to time.