Foreign Direct Investment (FDI) is a direct investment into production or business in a country by an individual or company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
Foreign Direct Investment incentives may take the following forms:
Low corporate and individual income tax rates for foreign investors
Tax benefits/concessions for foreign investors
Preferential tariffs
Declaration of special economic zones
Bonded Warehouses
Investment financial subsidies
Land and Infrastructural subsidies
Easy rules and regulations and R&D support for foreign investors
When we talk of India where FDI was introduced by our Prime Minister Dr. Manmohan Singh under Foreign Exchange Management Act (FEMA) act in 1991. He was finance minister of India that time. India has seen remarkable growth during this period but the fear of takeovers was significant.
Now when there is the scenario of economic slump where Rupee vs. Dollar is increasing day by day and GDP (Gross domestic product) is also increasing at alarming rate. In this scenario India is witnessing the more relaxation towards FDI there will be the situation when various foreign countries have large share in India.
The most recent example is India's pharmaceuticals sector has received FDI of $1 billion the highest among the top 10 segments during the period of April-June this year lead to the amid concerns over increasing acquisitions of domestic firms by multinationals. Such as US-based pharmaceutical firm Mylan Inc's to acquire Indian generic drugs company Agila Specialties and Other big acquisitions in Biotech includes Shantha Biotechnics by French pharma company Sanofi-Aventis.
In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy BSE 5.89% for USD 4.6 billion. The other sectors which received FDI during April- June quarter of the fiscal include services (USD 945 million), automobile industry (USD 515... Read More
Foreign Direct Investment incentives may take the following forms:
Low corporate and individual income tax rates for foreign investors
Tax benefits/concessions for foreign investors
Preferential tariffs
Declaration of special economic zones
Bonded Warehouses
Investment financial subsidies
Land and Infrastructural subsidies
Easy rules and regulations and R&D support for foreign investors
When we talk of India where FDI was introduced by our Prime Minister Dr. Manmohan Singh under Foreign Exchange Management Act (FEMA) act in 1991. He was finance minister of India that time. India has seen remarkable growth during this period but the fear of takeovers was significant.
Now when there is the scenario of economic slump where Rupee vs. Dollar is increasing day by day and GDP (Gross domestic product) is also increasing at alarming rate. In this scenario India is witnessing the more relaxation towards FDI there will be the situation when various foreign countries have large share in India.
The most recent example is India's pharmaceuticals sector has received FDI of $1 billion the highest among the top 10 segments during the period of April-June this year lead to the amid concerns over increasing acquisitions of domestic firms by multinationals. Such as US-based pharmaceutical firm Mylan Inc's to acquire Indian generic drugs company Agila Specialties and Other big acquisitions in Biotech includes Shantha Biotechnics by French pharma company Sanofi-Aventis.
In 2008, Japanese firm Daiichi Sankyo had bought out the country's largest drug maker Ranbaxy BSE 5.89% for USD 4.6 billion. The other sectors which received FDI during April- June quarter of the fiscal include services (USD 945 million), automobile industry (USD 515... Read More
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