We provide expert advise on inbound investment in India. Any foreign entity, entrepreneurial wanted to set up business then we take care of their registration and compliance.
FDI in India
This is primarily attributed to ease in FDI rules in India. India, today is a part of the top 100 clubs on Ease of Doing Business (EoDB). FDI inflows in India stood at $45.15 Bn in 2014-15 and have consistently increased since then.
Total FDI inflows in the country in the last 23 years (Apr 2000 to Dec 2023) are $971.521 Bn while the total FDI inflows received in the last 9 years (Apr 2014 to Dec 2023) was $448.896 Bn which amounts to nearly 67% of total FDI inflow in last 23 years.
In FY 2014-15, FDI inflow in India stood at mere $45.15 Bn, which increased to $60.22 Bn in 2016-17 and further to the highest ever annual FDI inflow of $83.57 Bn reported during the FY 2021-22.
Total FDI inflows in the country in the FY 2023-24 is $17.96 Bn and total FDI equity inflows stands at $11.54 Bn.
Mauritius (26%), Singapore (23%), USA (9%), Netherland (7%) and Japan (6%) emerge as top 5 countries for FDI equity inflows into India FY 2023-24.
Top 5 sectors receiving highest FDI Equity Inflow during FY 2023-24 are Services Sector (Finance, Banking, Insurance, Non Fin/ Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) (16%), Computer Software & Hardware (15%), Trading (6%), Telecommunications (6%) and Automobile Industry (5%).
Top 5 States receiving highest FDI Equity Inflow during FY 2023-24 are Maharashtra (30%), Karnataka (22%), Gujarat (17%), Delhi (13%), and Tamil Nadu (5%).
Automatic Route
Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment.
Government Route
Under the Government Route, prior to investment, approval from the Government of India is required. Proposals for foreign direct investment under Government route, are considered by respective Administrative Ministry/ Department.
OUTBOUND INVESTMENT
We provide expert advises on outbound investment from India to outside India. Specially in USA.
Brief about Investment outside India:
The Indian regulations permit outbound investments from India into overseas companies, branch offices, joint ventures, etc. The Indian home grown business houses interested in or aiming to set-up shop abroad or getting listed on the overseas bourses, also need to understand and stride through an interplay of cross-border taxes and regulatory challenges.
Brief about Investment in USA:
The U.S. workforce is diverse, skilled, innovative, and mobile – and U.S. workers are among the most productive in the world. In fact, U.S. workforce output per hour is more than 30 percent above the OECD member country average. Looking to the future, the United States has prioritized collaborative mechanisms with public and private-sector organizations to ensure that the workforce is able to meet the needs of a 21st-century economy.
Companies operating in the United States – from individual entrepreneurs with a dream to established businesses expanding their local physical presence – have access to a wide range of short- and long-term investment sources. Unlike in many other markets, capital investors in the United States are typically not involved in the day-to-day management or operations of the organizations they are funding.
Our key service offerings for outbound investment are:
- Advise on cross-border investment strategies and suggestions for obtaining optimal ownership/jurisdiction structures for investment into a particular jurisdiction which includes setting up an international holding company, global sales company, etc.
- Advise and assistance on entity structuring, capital structuring and regulatory approval processes in the selected jurisdiction
- Assistance in finalizing/review of shareholders, joint venture and other relevant business agreements from a tax perspective
- Identifying and enhancing tax and fiscal incentives, including obtaining tax rulings in the selected jurisdiction
- Advise on the tax credit claim in India and tax treaty implications
- Assistance in obtaining approvals from the Reserve Bank of India/regulatory authorities that may be required in the matter.
