India is one of the fastest growing countries in the world. India is going through a period of economic liberation and growth, granting overseas investors more access to its vast and varied market than ever.
A large, young population and a strong export sector await expanding businesses, with a potential consumer base that far outstrips most other nations in the developed and developing world. Political stability and broad consensus on reforms is also a big pull for expanding companies, and the well-developed banking system and vibrant capital market highlight the maturity of its financial system.
But doing business in India has its own challenges, and having local help can really make the difference to the success of your venture.
India’s legal System
- The Indian Judicial System is one of the oldest legal systems in the world . It is part of the inheritance India received from the British after more than 200 years of their Colonial rule, and there are many similarities the Indian legal system shares with the English Legal System.
- Law in India has evolved from religious prescription to the current constitutional and legal system, traversing through secular legal systems and the common law.
- The frame work of the current legal system has been laid down by the Indian Constitution and the judicial system derives its powers from it.
- The Constitution of India is the supreme law of the country, the fountain source of law in India. It came into effect on 26 January 1950 and is the world’s longest written constitution.
- It not only laid the framework of Indian judicial system, but has also laid out the powers, duties, procedures and structure of the various branches of the Government at the Union and State levels. Moreover, it also has defined the fundamental rights & duties of the people and the directive principles which are the duties of the State.
- The Indian Judicial System is a mix of the Courts, the Tribunals & the Regulators, and all these entities are working together as part of an integrated system for the benefit of the nation.
- Today India has an organic law as consequence of common law system. Through judicial pronouncements and legislative action, this has been fine-tuned for Indian conditions. The Indian legal system’s move towards a social justice model, though undertook independently, can be seen to mirror the changes in other territories with common law system.
Investment into India
The Foreign Direct Investment (FDI) policy in India is widely reckoned to be among the most liberal in the emerging economies and FDI up to 100% is allowed under the automatic route in most sectors and activities. In addition to (FDI), Foreign Institutional Investment (FII) is also flowing into India. Qualified foreign entities (other than those predominantly owned by non – resident Indians) seeking to undertake investments in India are regarded as FIIs.
“Make in India” initiative focuses on 25 sectors, including pharmaceuticals and railways, most of which permit 100% foreign investment. India has already marked its presence as one of the fastest growing economies of the world. Since 1991, the regulatory environment in terms of foreign investment has been consistently eased to make it investor-friendly. The Government has taken a number of FDI Policy reforms, which are not only bold but also historic. The measures taken by the Government are directed to open new sectors for foreign direct investment, increase the sectoral limit of existing sectors and simplifying other conditions of the FDI policy. FDI policy reforms are meant to provide ease of doing business and accelerate the pace of foreign investment in the country.
See more at www.makeinindia.com/policy/foreign-direct-investment
For the purpose of easing investment, the government has set up an agency known as “Invest India”. Invest India is the official Investment Promotion and Facilitation Agency of the Government of India, mandated to facilitate investments into India.
See more at www.investindia.gov.in