Since 1991 the Government has embarked on a liberalisation and economic reforms programme with a view to bring about rapid and substantial economic growth and move towards globalisation of the economy. The new policies have substantially relaxed provisions related to foreign investment industrial licensing foreign exchange controls etc. The Capital market has been opened up to foreign investment and restrictions on imports have been largely removed.
Government is committed to promoting accelerated growth in the industrial sector .
Increasing the level of inflow of FDI into the country is one of the main objectives of the Government's economic development strategy. In order to achieve the goal the government is also committed to putting in place appropriate institutional arrangements and transparent rules procedures and guidelines for investment promotion and for considering and approving the proposals for Foreign Direct Investment. Towards fulfilling this objective the Government has recently taken a number of decisions to further liberlise the Foreign Direct Investment regime. All these are contained in this, the 4 th edition of this manual. This condition will not apply to electronics, computer software, printing and other non-polluting industries so notified from time to time.