Outbound Investment Structuring | A Detailed Guide
The Government has become liberal in the past few years regarding inbound and outbound investment regimes. The Industrial Policy Resolution of 1956 and Industrial Policy of 1991 provide the basic structure for the overall introduction of liberalization and Globalization in the Indian Economy. Until the 1980’s foreign investment was permitted only where the desired Technology was not available. Every single country has its own set of issues, the regulatory framework in terms of the legal and judicial system, tax structure and business dynamics. The economy has experienced a rapid economic growth rate, more foreign investment, and a boom in the Information Technology sector. This can also be referred to as cross-border Taxation policy were the countries.
What is Outbound Investment from India?
Most of the important sectors of commerce and economy due to liberal FDI policies have opened the doors for extensive investments in various profitable and financially secure sectors. Some of the preferable destinations for investment are the United States, United Kingdom, France. Germany, Hong Kong, Belgium, Spain, Canada, and the Gulf Countries. Latin American and African Countries have huge outbound investment structuring opportunities in the fields of mining, manufacturing, and agriculture. Indian firm’s basic investment in foreign countries through Mergers and Acquisition (M&A) activity. Investment by Indian companies is expected to increase backed by stable market conditions and considerable impact of the investments on local economies.
Benefits of Outbound Investment
Investments in Foreign Companies can be very beneficial to the economy of both countries. For investing the benefits are as follows:
Access to foreign Markets:
Acquiring or starting a business in foreign markets can gain access to the market for investors. More business opportunities will arise.
Access to resources:
Important natural resources such as precious metals and fossil fuels are available in Tanzania and Gulf Countries. It can be easily available at low prices by investing there.
Cost Savings:
The cost of Production will be saved if the labor or production cost is less in another country.
How Enterslice can help you in Outbound Investments Structuring?
