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FAQ

Frequently Asked Questions

Where can I find information about investment restrictions in India and the general business climate?
What does India import and export?
What is India's Foreign Investment Promotion Board and how does it work?
Does India provide effective protection of intellectual property rights?

1.  I am interested in investing in India or partnering with an Indian firm to do business in a third country.  Where can I find information about investment restrictions in India and the general business climate

The Indian economy is mostly deregulated, though investors should scan the State Department's Investment Climate Statement about India to learn which industries require government approval prior to investment.  Like in the United States, new business start-up and investments are regulated both at the national and state government levels.  Similar to the United States, regulations vary from state to state. 

2. What does India import and export? 

India is an emerging economy that has seen more than 6 percent growth consistently, even during the global financial crisis.  India exports commodities such as textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures.  Likewise, India's largest import categories include crude oil, machinery, gems, fertilizer, and chemicals.  To learn more about India's export and import activities, the government posts data on their Department of Commerce's website

3.  What is India's Foreign Investment Promotion Board and how does it work? 

Investments in regulated sectors require approval by the government.  The Ministries of Finance and Commerce (equivalent to the United States Department of the Treasury and Commerce) co-chair a Foreign Investment Promotion Board (FIPB) that approves investments.  To learn more about which sectors of the economy require government approval, visit the Investment Climate Statement or visit the FIPB website.

4. Does India provide effective protection of intellectual property rights?

As indicated in the Office of the U.S. Trade Representative’s 2012 Special 301 Report, India made limited progress on IPR protection and enforcement in 2011, and its legal framework and enforcement system remain weak. 

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