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Foreign investors and Non-Resident Indians (NRIs) have the choice of entering the industrial, financial or service sector. They can undertake imports into and exports from India and set up joint ventures with focus on the domestic Indian market. Now, investing in India is even easier!!
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Indian Dairy Advantage
Foreign Investment
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Scope for Foreign Investment

As the industry moves forward, opportunities abound in a country which has the world's largest middle class -- some 300 million strong and still growing. The bulk of expansion in the world milk production is taking place in Asia, and India figures prominently in it. 'Bharat' - the golden sparrow,  is attracting foreign investors who are assured of good returns.The scope for foreign investment in India is vast. India offers to foreign investors a well balanced package of fiscal incentives for exports and industrial investments. It includes complete tax exemptions and tax holidays. Investment incentives are offered by both the Central Government and the Government of the State in which the unit is located. India has tax treaties with 40 countries.

Foreign investors and Non-Resident Indians (NRIs) have a the choice of entering the industrial, financial or service sector. Within the sectors, there are two options available:

They can undertake imports into and exports from India and set up joint ventures with focus on the domestic Indian market.
They can shift the production base to India by investing in 100 per cent export-oriented units (EOUs). The focus may be on third-country markets or manufacturing of components for partner units in other countries. India now welcomes direct foreign investment in virtually all industries. Foreign investors can freely hold a majority stake in most industrial enterprises as well as trading companies engaged in exports.

India, post liberalization, has not only opened it's doors to foreign investors but also made investing easier for them.

Foreign exchange controls have been eased on the account of trade.
Companies can raise funds from overseas securities markets and now have considerable freedom to invest abroad for expanding global operations.
Foreign investors can remit earnings from Indian operations.
Foreign trade is largely free from regulations, and tariff levels have come down sharply in the last two years. While majority foreign investment (up to 51 per cent) is allowed in most industries, foreign equity up to 100 per cent is encouraged in export-oriented units, depending on the merit of the proposal. In certain specified industries reserved for the small scale sector, foreign equity up to 24 per cent is now permitted.
All proposals involving foreign investment and technology transfer require approval which can be granted in two ways.
One is automatic approval by the Reserve Bank of India (RBI) in cases where specified parameters are met.
The second way covers all other cases, dealt with by the Foreign Investment Promotion Board (FIPB) or the Secretariat for Industrial Approvals (SIA).

Non-resident Indians/persons of Indian origin/overseas corporate bodies are also encouraged to invest. Incentives offered to them include:

Repatriation of capital and income accruing thereon up to 100 per cent.
Automatic approvals for such investments will be granted by the RBI.
NRIs are now permitted to invest in Mutual Funds, whether floated by public or private financial institutions, with repatriation facility.
Portfolio investment scheme is another area of attraction to NRIs.
The one-year lock-in period for repatriation of disinvestment has now been removed.
Companies, irrespective of their sector of operation, are permitted to make reservation for NRIs in public issues, subject to SEBI guidelines.
All investments approved by Government of India are insured against expropriation/nationalization by the Multilateral Investment Guarantee Agency (MIGA).

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