India has one of the most liberal and transparent policies on Foreign Direct Investment (FDI) amongst the major economies of the world. 100% FDI is allowed under the automatic route in all sectors/activities except in few areas, which require prior approval of the Government. For details regarding the policy and procedures on FDI, please refer to the FDI Manual.

Foreign Institutional Investors (FIIs) are allowed to invest in India in the securities traded in both primary and secondary capital markets. FIIs must register with Securities and Exchange Board of India (SEBI) and shall comply with the Exchange Control Regulations of Reserve Bank of India (RBI).

India has a federal system of Government with clear demarcation of powers between the Central Government and the State Governments. India has a financial system that is regulated by independent regulators in the sectors of banking, insurance, capital markets, competition and various services sectors. In a number of sectors, Government plays the role of regulator. The tax rates have been rationalized over the years and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India. India has a well-established and independent judiciary system.

The importance of Intellectual Property in India is well established at all levels- statutory, administrative and judicial in accordance with its obligations under the TRIPS Agreement of the WTO.

The Foreign Trade Policy of Government of India provides for setting up of Special Economic Zones (SEZ) in the country with a view to provide an internationally competitive business environment for exports. Units may be set up in SEZ for manufacture of goods and rendering of services. India provides for core labour standards of International Labour Organisation for welfare of workers and to protect their interests.

Government of India accords high priority to development of economic infrastructure such as highways, ports, railways, airports, power, telecom, etc. Government is actively seeking domestic and foreign private investment for infrastructure sector development.

FDI Manual

India-Mauritius Bilateral Investment Protection and Promotion Agreement (BIPPA)