Foreign Direct Investment: The Conundrum Explained

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…)

Foreign Direct Investment in Retail: II

By Aashna Jain, National Law University, Jodhpur.

SEGMENT 2

This write-up seeks to examine the economic progress made by the country in the field of FDI in retail. This article seeks to examine the socio-economic constraints in introducing FDI in Retail in India. Also the impact that FDI has on the Indian Sub-continent particularly its markets will be carefully analyzed. Also this article gives some policy suggestions to promote healthy development of FDI in Retail in India. (more…)

Foreign Direct Investment in India: I

By Aashna Jain, National Law University, Jodhpur.

SEGMENT 1

FDI in Defence- Recent Development

It was December 2014 and the debate on the topic of FDI in Defence got heated up.

“The biggest and the most immediate fallout from Prime Minister Narendra Modi’s visit to the United States should be this: India allows 100 per cent FDI in defence. This is the crying need of the Indian armed forces, neglected for decades, if the national security issues have to be redressed hundred per cent.”[1] (more…)