FDI from Netherlands to India has registered significant growth over the last few years due to the several incentives that have been provided by the Indian government. The increased flow of FDI from Netherlands to India has helped in the growth of the country's economy.
Foreign direct investment in India:
Investment regulations in India were liberalized with the aim of increasing the flow of foreign direct investment in the country. Majority of the companies in India have been opened fully to foreign direct investment with the international investors allowed to own equity up to 100% in the Indian companies.
At the same time there are a few industries in India where there is a limit to foreign direct investment. The industries that have attracted foreign direct investment in India are chemicals, telecommunications, information technology, and food processing industries.
Amount of FDI from Netherlands to India:
FDI from Netherlands to India has increased at a very fast pace over the last few years. Netherlands ranks sixth among all the countries that make investments in India. The total flow of FDI from Netherlands to India came to Rs. 3,251.65 crores between 1991 and 2002. The total percentage of FDI from Netherlands to India stood at 4.5% out of the total foreign direct investment in the country between 1991 and 2002.
Various industries attracting FDI from Netherlands to India are:
- Food processing industries
- Telecommunications that includes services of cellular mobile, basic telephone, and radio paging
- Horticulture
- Electrical equipment that includes computer software and electronics
- Service sector that includes non- financial and financial services
Effects of FDI from Netherlands to India:
The effects of FDI from Netherlands to India have been that it has helped in improving the technology of the various industries in the country, create new employment opportunities, and also give boost to the country's economy.
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