SECRETARIAT FOR INDUSTRIAL ASSISTANCE
DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION
MINISTRY OF COMMERCE & INDUSTRY, GOVT. OF INDIA
NEW DELHI
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Investing In India
F O R E I G N D I R E C T I N V E S T M E N T
Policy & Procedures
INVESTING
IN
INDIA
FOREIGN DIRECT INVESTMENT
- Policy and Procedures
September- 2004
(Secretariat for Industrial Assistance)
Department of Industrial Policy and Promotion
Ministry of Commerce and Industry
Government of India
New Delhi
SIA
Published by:
Secretariat for Industrial Assistance
Department of Industrial Policy & Promotion
Ministry of Commerce & Industry
Government of India, New Delhi
September, 2004
This booklet on ‘Investing in India-Foreign Direct Investment- Policy and Procedures’ is
intended to serve as a guide to prospective investors/entrepreneurs and does not purport to
be a legal document. In case of any variance between what has been stated in this booklet
and the relevant Act, Rules, Regulations, Policy Statements, etc., the latter shall prevail.
FOREWORD
Foreign Direct Investment (FDI) plays an important role in the economic development not only as a source of
financial capital but also as a means of knowledge and technology transfer. Since 1991,the Government of India has been
pursuing a programme of structural reforms aimed at stabilizing the economy and promoting reliance on market mechanisms.
2.
The FDI policy in India has been progressively liberalized. FDI is now permitted in most sectors/activities under the
automatic route. The FDI Policy in India is widely recognized as being very liberal. This is reflected in the international
recognition of India as a hot investment destination.
3.
This publication is intended to provide first hand information on the policies and procedures relating to investing in India.
This is also available at the website of the Department (www.dipp.nic.in). Clarification can also be sought through E-mail or on-
line Chat available daily between 1100 - 1200 hrs(IST) & 1600 – 1700 hrs (IST) (GMT + 5.30) or Bu