Trade Policies

  Foreign Direct Investment

A large portion of the FDI has been flowing into the skill-intensive and high value-added services industries, particularly financial services and information technology. India, in fact, dominates the global service industry in terms of attracting FDI with its unassailable mix of low costs, excellent technical and language skills, mature vendors and liberal supportive government policies.

  General Government Initiatives

The Indian Government's approach towards foreign investment has changed considerably during the past decade. Foreign investment, which was permitted only in restricted industries under exceptional conditions, has been liberalised across the board, excluding certain restricted or prohibited industries. The sweeping economic reforms undertaken by the government aimed at opening up the economy and embracing globalisation have been instrumental in the surge in FDI inflows.

The government has taken various steps to further facilitate and augment the inflow of foreign investment into India.

  The government would soon remove the compulsory disinvestment clause on overseas companies in major sectors like food processing and chemicals, a move aimed at simplifying foreign direct investment (FDI) rules further. T