Foreign investment in India refers to the inflow of capital from international entities into various sectors of the Indian economy. This can be done directly through company acquisitions, construction of facilities and reinvestment of profits from overseas operations or indirectly through other entities based in India. Foreign Direct Investment (FDI) is a significant driver of economic growth and is a critical source of non-debt financial resources for the economic development of the country.
The legal and regulatory environment of India is multifaceted and poses several unique challenges. Given the multitude of regulations governing foreign investment, businesses often consult law firms in India when planning their investment strategy. These firms provide legal assistance in navigating India’s complex regulatory framework which includes the Foreign Exchange Management Act (FEMA), the Income Tax Act, the Companies Act and various other industry-specific laws and regulations.