FOREIGN DIRECT INVESTMENT
India has already marked its presence as one of the fastest growing economies of the world. It has been ranked among the top 3 attractive destinations for inbound investments. Since 1991, the regulatory environment in terms of foreign investment has been consistently eased to make it investor-friendly.
The continuous inflow of foreign direct investment (FDI), which is now allowed across several industries, clearly shows the faith that overseas investors have in the country’s economy. FDI inflows to India increased 17 per cent in 2013 to reach US$ 28 billion, as per a United Nations (UN) report.
The Indian government’s policy regime and a robust business environment have ensured that foreign capital keep flowing into the country. The government has taken many initiatives in recent years such as relaxing FDI norms in 2013, in sectors such as defense, PSU oil refineries, telecom, power exchanges and stock exchanges, among others. The same year, big global brands such as Tesco, Singapore Airlines and Etihad lined up to invest in India as the government opened more sectors to foreign investment.
The present government has also instituted certain reforms which make India a more investor friendly destination.
Repatriation of Dividends
Dividends are freely repatriable without any restrictions (net after tax deduction at source or Dividend Distribution Tax).