Entry Strategies for Foreign Investors in India

Abstract

Entry Strategies for Foreign Investors in India are of various kinds such as in joint collaboration with an Indian firm, as an Indian company, and as a foreign company. The various Entry Strategies for Foreign Investors in India have helped to bring in huge amounts of FDI into India.

Foreign direct investment in India

The government of India made several changes in the economic policy of the country in the early 1990s.

This led to the deregulation and liberalization of the Indian economy and also opened the country's markets to foreign direct investment. The Indian government in order to increase the flow of foreign direct investment in the country formulated various Entry Strategies for Foreign Investors in India. According to the Indian government's FDI policy up to 100% is allowed through the automatic route in almost all the sectors of the country's economy.

Various Entry Strategies for Foreign Investors in India

• An international company can start its operations in the country by setting up a company according to the Companies Act. The total amount of foreign direct investment that is allowed in such companies is 100%
• An international company can start its operations in India by forming joint collaboration with an Indian partner.
• An international company can start its operations in India by establishing a subsidiary that is wholly owned in such sectors where foreign direct investment up to 100% is allowed
• An international company can start its operations in India by setting up branch office, representative office, and project office.

Indian government must formulate more Entry Strategies for Foreign Investors in India

The government must formulate more Entry Strategies for Foreign Investors in India, for this will lead to huge amounts of foreign direct investment coming into the country. This in its turn will help in the growth of the Indian economy.