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FOREIGN INVESTMENT POLICY
2.1 Industrial Policy
The Industrial Policy Resolution of 1956 and the statement on Industrial Policy of 1991 provide the basic framework for the overall policy in regard to the manufacturing industries . In the initial stages , industrial growth was regulated through grant of licenses , approvals , etc . The industrial policy announced in 1991 substantially dispensed with industrial licensing , announced measures facilitating foreign investment and technology transfers , and threw open the areas so far reserved for the public sector .
The objective of this industrial policy is to :
( i ) |
maintain a sustained growth in productivity |
( ii ) |
enhance gainful employment |
( iii ) |
achieve optimal utilization of human resources |
( iv ) |
attain international competitiveness |
( v ) |
transform India into a major partner and player in the global arena |
With the objectives in focus , the government remains keen to deregulate Indian industry which will provide the freedom and flexibility in responding to market forces and alongside foster growth of the Indian industry .
2.2 Foreign Investment Policy
Cumulative Inflows ( April ’ 00 to January ’ 13 ( US $ Million )
60000 50000
71378
U S $ Millio n
40000 30000 20000 10000
0
18661 13878 10941 17083 8208 6741 5092 3396 2359
Mauritius Neitherland
Singapore |
Japan |
USA |
UK |
Cyprus |
Germany |
France |
UAE |
Figure 7 Source : Department of Industrial Policy & Promotion , Ministry of Commerce & Industry
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