Last month the Government of India released the Consolidated Foreign Direct Investment (FDI) Policy, which incorporates the policy changes effected over the last year by the Indian government making the Policy simpler, more investor friendly, and more precise in order to facilitate the ease of doing business in India. This goal was mainly accomplished by including a majority of business sectors under the “automatic route” of FDI permission, meaning a foreign investor is permitted to invest up to 100% in an Indian company without any prior government approvals.
Among the business sectors impacted by the new FDI Policy are private security, E-commerce, banking, insurance, construction, medical devices, LLPs, duty-free shops, and plantations. In addition, further liberalization measures announced by the Government of India impact food retail, defense, broadcasting, pharmaceuticals, single-brand retail, and civil aviation. If you are interested in doing business in India, or are currently doing business in India, consult with your Ally Law member firm to determine how these policy changes may impact your investments and course of business. Ally Law member firms understand and apply the corporate and investment laws and regulations in every country around the world, and can guide you through legal compliance and best practices in any jurisdiction in which you choose to do business.
For more information about Ally Law member firm services in this area, contact us at yourally@ally-law.com.
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By Sharanya G. Ranga of Advaya Legal.
