ANNOUNCEMENT 30 Jun 2011

In June 2011, the government of India announced altered domestic business conditions for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 30 Jun 2011 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

On 30 June 2011, the Reserve Bank of India permitted the issue of equity/preference shares under the Government route of the FDI scheme for certain categories of transactions.
 
The following transactions are eligible under this measure - 
i) Import of capital goods/ machineries / equipments (including second-hand machineries) under certain conditions
ii) Pre-operative/pre-incorporation expenses (including payments of rent etc.) subject to compliance of necessary conditions.
 
A successful application requires approval by the Government subject to pricing guidelines and appropriate tax clearance.
 
As of 8 May 2012, import of second hand machineries under this measure has been disallowed.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A