IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Sep 2009 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

In three Press Notes (No. 2, 3, and 6) the Indian Ministry of Commerce and Industry has sought to clarify the implementation of various aspects of that nation's foreign investment regime. Specific attention was given to the calculation of indirect foreign investment holdings (No 2.) and the terms under which transfer of ownership or control from a resident Indian to non-resident entities (No. 3). Press Note No. 6 sought to clarify the rules concerning foreign investment into small scale industrial undertakings and micro and small enterprises, as well as for the conditions under which an industrial firm can manufacture products otherwise reserved for small scale industrial undertakings and micro and small enterprises.
An evaluation of these Press Notes does not suggest that the treatment of foreign investors has worsened. While some private sector commentators have suggested that these Notes do not clarify every potential contigency or matter, the GTA assessment is that these Notes add to the transparency of the Indian foreign investment regime.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

Please report this page in case you detect an inaccuracy in its content.