By Bhumesh Verma, Managing Partner, Corp Comm Legal.
Foreign Direct Investment or FDI, as it is called in common parlance, has become the fuel which is essential to sustain and develop any country’s economy. Developing countries such as India, require significant and consistent infusion of foreign investments in their economy in order to maintain a high GDP rate. The demands of the ever-growing consumerist culture are also satiated by the influx of FDI. Sectors such as infrastructure, retail, aviation, pharmaceuticals, etc. require continuous cash flow for their sustenance. A liberal FDI regime allows companies existing within such sectors to look for financial assistance outside the country. This ensures that the country’s economic development does not suffer due to lack of financial resources within the country. The authors explain the essentials of the FDI regime in India through this article. (more…)