Fdi in India
CHAPTER 1:INTENT AND OBJECTIVE
1.1 INTENT AND OBJECTIVE
1.1.1 It is the intent and objective of the Government of India to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills, for accelerated economic growth. Foreign Direct Investment, as distinguished from portfolio investment, has the connotation of establishing a ‗lasting interest‘ in an enterprise that is resident in an economy other than that of the investor.
1.1.2 The Government has put in place a policy framework on Foreign Direct Investment, which is transparent, predictable and easily comprehensible. This framework is embodied in the
Circular on Consolidated FDI Policy, which may be updated every year, to capture and keep pace with the regulatory changes, effected in the interregnum. The Department of Industrial
Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India makes policy pronouncements on FDI through Press Notes/ Press Releases which are notified by the
Reserve Bank of India as amendments to the Foreign Exchange Management (Transfer or Issue of Security by Persons Resident Outside India) Regulations, 2000 (notification No.FEMA
20/2000-RB dated May 3, 2000). These notifications take effect from the date of issue of Press
Notes/ Press Releases, unless specified otherwise therein. In case of any conflict, the relevant
FEMA Notification will prevail. The procedural instructions are issued by the Reserve Bank of
India vide A.P. Dir. (series) Circulars. The regulatory framework, over a period of time, thus, consists of Acts, Regulations, Press Notes, Press Releases, Clarifications, etc.
1.1.3 The present consolidation subsumes and supersedes all Press Notes/Press
Releases/Clarifications/ Circulars issued by DIPP, which were in force as on April 09, 2012, and reflects the FDI Policy as on April 10, 2012. This Circular accordingly will take effect from
April 10, 2012.
1.1 INTENT AND OBJECTIVE
1.1.1 It is the intent and objective of the Government of India to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills, for accelerated economic growth. Foreign Direct Investment, as distinguished from portfolio investment, has the connotation of establishing a ‗lasting interest‘ in an enterprise that is resident in an economy other than that of the investor.
1.1.2 The Government has put in place a policy framework on Foreign Direct Investment, which is transparent, predictable and easily comprehensible. This framework is embodied in the
Circular on Consolidated FDI Policy, which may be updated every year, to capture and keep pace with the regulatory changes, effected in the interregnum. The Department of Industrial
Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India makes policy pronouncements on FDI through Press Notes/ Press Releases which are notified by the
Reserve Bank of India as amendments to the Foreign Exchange Management (Transfer or Issue of Security by Persons Resident Outside India) Regulations, 2000 (notification No.FEMA
20/2000-RB dated May 3, 2000). These notifications take effect from the date of issue of Press
Notes/ Press Releases, unless specified otherwise therein. In case of any conflict, the relevant
FEMA Notification will prevail. The procedural instructions are issued by the Reserve Bank of
India vide A.P. Dir. (series) Circulars. The regulatory framework, over a period of time, thus, consists of Acts, Regulations, Press Notes, Press Releases, Clarifications, etc.
1.1.3 The present consolidation subsumes and supersedes all Press Notes/Press
Releases/Clarifications/ Circulars issued by DIPP, which were in force as on April 09, 2012, and reflects the FDI Policy as on April 10, 2012. This Circular accordingly will take effect from
April 10, 2012.