Emerging Issues in India: Foreign Direct Investment
Emerging Issues in India- Foreign Direct Investment-
An overview on Overseas Investment |
| Liberalisation in overseas investment policy, in order to improve exports and strengthen economic linkages with foreign countries, has intensified India's participation on the international arena.Overseas InvestmentsAs per the recent RBI data, Indian companies carried out overseas investment transactions that resulted in outward FDI. Some like SanmarGroup International committed US$ 67.65 million to its Switzerland-based wholly-owned subsidiary (WoS) Sanmar Group AG. The WoS is engaged in financial, insurance, real estate and business services. Tata Steel infused US$ 54.63 million in its Singapore-based WoS, Tata Steel Asia Holdings Pte., Crompton Greaves invested US$ 43.19 million in its WoS based in Mauritius. GlenmarkPharmaceuticals committed US$ 55.47 million in its Switzerland-based manufacturing WoS, Glenmark Holdings SAApart from these players, there are many other Indian firms who are ready to venture abroad for growth and development. Other major overseas acquisitions in recent years by Tata Steel, Hindalco, Bharti Airtel, etc have also been a part of their inorganic growth strategies.Investments Abroad - Government InitiativesThe overseas investment policy has been streamlined substantially- both in terms of scope and size, and more so, after the introduction of Foreign Exchange Management Act (FEMA) in June 2000. The US, the UK, Singapore, Mauritius, the Netherlands and British Virgin Islands are the main target countries that aide outward FDI from India, with Africa becoming an increasingly viable destination.Further, the government is considering setting up a high-level panel that will approve overseas asset acquisition by state owned companies without going to the cabinet.The Indian central bank has decided to further liberalise the overseas investment policy with a view to facilitate more operational flexibility to the corporate.Trend of outward
An overview on Overseas Investment |
| Liberalisation in overseas investment policy, in order to improve exports and strengthen economic linkages with foreign countries, has intensified India's participation on the international arena.Overseas InvestmentsAs per the recent RBI data, Indian companies carried out overseas investment transactions that resulted in outward FDI. Some like SanmarGroup International committed US$ 67.65 million to its Switzerland-based wholly-owned subsidiary (WoS) Sanmar Group AG. The WoS is engaged in financial, insurance, real estate and business services. Tata Steel infused US$ 54.63 million in its Singapore-based WoS, Tata Steel Asia Holdings Pte., Crompton Greaves invested US$ 43.19 million in its WoS based in Mauritius. GlenmarkPharmaceuticals committed US$ 55.47 million in its Switzerland-based manufacturing WoS, Glenmark Holdings SAApart from these players, there are many other Indian firms who are ready to venture abroad for growth and development. Other major overseas acquisitions in recent years by Tata Steel, Hindalco, Bharti Airtel, etc have also been a part of their inorganic growth strategies.Investments Abroad - Government InitiativesThe overseas investment policy has been streamlined substantially- both in terms of scope and size, and more so, after the introduction of Foreign Exchange Management Act (FEMA) in June 2000. The US, the UK, Singapore, Mauritius, the Netherlands and British Virgin Islands are the main target countries that aide outward FDI from India, with Africa becoming an increasingly viable destination.Further, the government is considering setting up a high-level panel that will approve overseas asset acquisition by state owned companies without going to the cabinet.The Indian central bank has decided to further liberalise the overseas investment policy with a view to facilitate more operational flexibility to the corporate.Trend of outward