- Foreigners can directly invest in India either on their own or as a joint venture, with a few exceptions with regard to investment limits and sectors.
- No government approval is required for FDI in virtually all sectors except a small negative list formulated by government. Sector specific guidelines are formulated by government giving sectoral investment caps if any.
- If an investment does not qualify for automatic approval, FIPB considers the proposal.
- Use of foreign brands names/trademarks is permitted for sales in India.
- Indian capital markets are open to FII’s and Indian companies are allowed to raise funds from international capital markets
- Foreign technology collaborations are allowed with agreements on Technical knowhow fees
- Payment for designs and drawings
- Payment for engineering services
- Other royalty payments
NRI’s can invest in shares and or convertible debentures of Indian companies on a non-repatriable basis and these investments are not considered as FDI