Foreign direct investment policies plays a very important role in the economic growth of developing countries. The primary aim of these policies is to create a friendly business environment where foreign investors feels comfortable with the legal and financial frame work of the company, and have potential to reap profits from economical viable business Foreign Direct Investment is investment of foreign assets into domestic structures, equipment and organizations. Foreign direct investment is thought to have more useful to a country then investments in the equity of its companies because equity investments are hot money which can leave at the first sign of trouble, whereas FDI is durable whether things go well or badly.
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Foreign direct investment is very important for the growth of a country, therefore Government is therefore making all efforts to attract and facilitate FDI and investment from Non Resident(NRIs) including overseas corporate bodies, that are predominantly owned by them, to complement and supplement domestic investment. The procedure by which Foreign direct investment in India comes is by two ways one is automatic route and the next is through government approval. Foreign direct investment has become a key battle ground for emerging markets and some developed countries. Government level policies are needed to enable FDI inflows and maximize their returns for investors and recipient countries. If you want to have knowledge about the foreign direct investment policy and procedures 365 companies will help you in doing this.