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FDI in Outsourcing

(graphs show Indian fiscal years)

FDI in Outsourcing as % of Total FDI, USD mn
33,029 1.13%
0.80% 15,921 0.40% 0.20% 21,007 1.08%

FDI Initiatives of the Indian Government
The Indian government has taken major initiatives to promote

27,576
22,789

outsourcing such as: ? Foreign Direct Investment in 100% equity of the firm in LPO / BPO; ? Foreign corporations can set up their subsidiaries as private limited

companies with limited liability over share capital;
? 100% income tax exemption for export of many services like back office operations, legal databases and claim processing, among others.

2007

2008
Total FDI, USD mn

2010

2011

2012

% of Outsourcing in Total FDI

FDI in Services, USD mn (shown are calendar years)
3,982.90

1,345.90

1,408.40

1,331.50

2,192.00

2,851.90

847.20

689.00

576.87

551.97

433.31

636.97

834.19

372.79

392.95

367.26

126.73

276.78

72.96

83.19

52.59

283.11

296.73

413.44

40.63

45.60

2007 Outsourcing

2008 R&D Non-Financial Services

2010 Insurance Services

2011 Banking Services Financial Services

28.88

32.63

2012

Source: CEIC, Global Outsourcing Association of Lawyers, Emerging Markets Insight calculations
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