Please forward this error screen to 204. Please forward this error screen to sharedip-1666230148. India has made many great improvements foreign direct investment dubai the last decade in achieving economic growth and poverty reduction.
The most significant advancement came in 1991 when India removed governmental obstacles and allowed its doors to open to foreign investment. This paper is an attempt to throw light on the policies of the Government of India towards FDI. The paper lists out the options as well as the corresponding procedures prescribed by the Government for the foreign entity to invest in India and also deals with the advantages and drawbacks of those options for FDI. A good strategy for first entering a foreign market, especially when the commercial risks and country risks are high. It creates more flexibility for adapting the operation to meet the requirements under different competitive conditions.
It incurs lower cost and lower resource commitment for entering foreign markets. An artificial and uneasy atmosphere is created by trying to combine the resources and the management approaches of two separate companies with different nationalities, backgrounds, experiences, abilities in one enterprise to pursue a common goal, to agree on common means and to work under the same authority, which creates problems in the day-to-day operation and the future planning for the JV. There is fear of the leakage of technical secrets since a strong foreign partner could use this technology for its own competitive advantage and perhaps create a future detriment to the parent company. JVs have to share the profit with local partners as well as reinvest the revenues for future expansion purposes. Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Transaction costs including the cost of negotiating and transferring information and capability to another firm, cost of personnel training, cost of losing the opportunity to having direct sales or getting the full amount of profit, and the threat of creating a competitor in markets beyond the purview of the agreement might be avoided.
Representative Office: It acts as a channel of communication between the principal place of business or head office and entities in India. It can not undertake any commercial activity directly or indirectly and can not, therefore, earn any income in India. Its role is limited to collect information about possible market opportunities and providing information about the company and its products to prospective Indian customers. RBI has now granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices can not undertake or carry on any activity other than the activity relating and incidental to execution of the project. A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer.