Foreign investment in India is encouraged and a fair number of foreign companies have established operations in the country. Under the New Industrial Policy, 1991 (amended from time to time), the Government of India has opened up most sectors for 100% foreign investment. Sectors such as banking, telecommunications, print media, etc. are still restricted to a certain extent.
As per recent changes, joint ventures and collaborations falling within the 100% foreign investment category do not require the prior approval of the Reserve Bank of India. All that they need to do is to intimate the Reserve Bank of India, once the foreign investment is made. In the restricted sectors, specific permission of the Foreign Investment Promotion Board ("FIPB"), Ministry of Industries is required. Our firm advises foreign entities on issues relating to collaborations and investments in India.