Foreign Investment Opportunities with the Help of a Partnership Business in India
by Future Brands Business specialistThere was a time when due
to a number of regulations and licensing practices, India was one of the least
favorable countries in the world for foreign firms who sought a partnership
business in India. But during the 90s, a major change in the government of India’s
stand on foreign investment opened the gates to multination firms from across
the world to set up their shops on Indian shores with relative ease. As years
passed by, India continued to enjoy immense foreign investment as a more
favorable climate was created by the government to attract investors from
developed markets.
Foreign
Investment in India
A number of international
firms have already invested huge sums of money in Indian markets and have
either gone solo to set up their own operations or have found a partnership business in India.
Any firm that wishes to invest in India will have to follow the procedures set
by the Companies Act of 1956 that allows setting up of a completely owned
subsidiary or a joint venture with a partnership business in India. International
firms can operate in India through a Liason Office, Branch Office or a Project
Office.
Type
of Investments Allowed for Foreign Companies
Automatic
Route
The automatic route allows
100% Foreign Direct Investment from offshore companies who do not have to seek
the permission of the Reserve Bank of India to make the investment. There is
another route where a foreign company can seek approval from the Government of
India before taking Foreign Direct Investment activities within the country.
The Foreign Investment Promotion Board is responsible for the grant of approval
to applications filed by foreign companies.
Foreign
Investment with a Partnership Business in India
India has a fast emerging market
for health and insurance companies to try their luck and reap rewards. The
demand is ever-growing among Indian consumers for better healthcare and
insurance services and the improved economic stability across prominent cities
across India has aided this demand. In the last decade we have already seen a
number of insurance multinationals joining hands with business partners in India
to set up alliances to provide a better insurance delivery platform. Another
sector that has seen immense foreign investment in the past is the mechanized
and communication industry which has plenty of potential and scope for profits.
The education sector is another industry where foreign investment can be made
with the help of a partnership business in India.
About
the Author…
Future
brand Marketing Consultants India is a brand management consultant provides
branding strategy, branding in India, retail industry services in India,
consumer insight, India consumer behavior, online consumer behavior, branding
insights, brand insights, marketing insights, India marketing
insights and consumer insight Indian.
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Created on Dec 31st 1969 18:00. Viewed 0 times.