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Banking

A guide to foreign direct investment in India

Busy work on the foundations of a mighty edifice

Buyer beware!


The general route:

• 100% foreign direct investment is allowed in real estate developments of more than 50,000 square metres

• Capital must be brought into India within six months of incorporation of a joint venture or subsidiary

• Repatriation of original investment allowed after three years

• At least 50% of the project has to be completed within five years

• Sale of undeveloped land is not permitted

• Minimum capitalization of $5 million for joint ventures and $10 million for wholly owned subsidiaries

Specific routes:

• 100% foreign direct investment allowed in IT parks and special economic zones

• 100% foreign direct investment allowed in hotels and service apartments

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