fdi in india
See also Foreign direct investment, India section.
Share of top five investing countries in FDI inflows. (2000–2010)[159]
Rank
Country
Inflows
(million USD)
Inflows (%)
1
Mauritius
50,164
42.00
2
Singapore
11,275
9.00
3
USA
8,914
7.00
4
UK
6,158
5.00
5
Netherlands
4,968
4.00
As the third-largest economy in the world in PPP terms, India is a preferred destination for FDI;[160] During the year 2011, FDI inflow into India stood at $36.5 billion, 51.1% higher than 2010 figure of $24.15 billion. India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI [161] policies were a significant hindrance. However, due to positive economic reforms aimed at deregulating the economy and stimulating foreign investment, India has positioned itself as one of the front-runners of the rapidly growing Asia-Pacific region.[160] India has a large pool of skilled managerial and technical expertise. The size of themiddle-class population stands at 300 million and represents a growing consumer market.[162]
During 2000–10, the country attracted $178 billion as FDI.[163] The inordinately high investment from Mauritius is due to routing of international funds through the country given significant tax advantages; double taxation is avoided due to a tax treaty between India and Mauritius, and Mauritius is a capital gains tax haven, effectively creating a zero-taxation FDI channel.[164]
India's recently liberalised FDI policy (2005) allows up to a 100% FDI stake in ventures. Industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI. The upward moving growth curve of the real-estate sector owes some credit to a booming economy and liberalised FDI regime. In March
Share of top five investing countries in FDI inflows. (2000–2010)[159]
Rank
Country
Inflows
(million USD)
Inflows (%)
1
Mauritius
50,164
42.00
2
Singapore
11,275
9.00
3
USA
8,914
7.00
4
UK
6,158
5.00
5
Netherlands
4,968
4.00
As the third-largest economy in the world in PPP terms, India is a preferred destination for FDI;[160] During the year 2011, FDI inflow into India stood at $36.5 billion, 51.1% higher than 2010 figure of $24.15 billion. India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI [161] policies were a significant hindrance. However, due to positive economic reforms aimed at deregulating the economy and stimulating foreign investment, India has positioned itself as one of the front-runners of the rapidly growing Asia-Pacific region.[160] India has a large pool of skilled managerial and technical expertise. The size of themiddle-class population stands at 300 million and represents a growing consumer market.[162]
During 2000–10, the country attracted $178 billion as FDI.[163] The inordinately high investment from Mauritius is due to routing of international funds through the country given significant tax advantages; double taxation is avoided due to a tax treaty between India and Mauritius, and Mauritius is a capital gains tax haven, effectively creating a zero-taxation FDI channel.[164]
India's recently liberalised FDI policy (2005) allows up to a 100% FDI stake in ventures. Industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI. The upward moving growth curve of the real-estate sector owes some credit to a booming economy and liberalised FDI regime. In March