India welcomes new foreign investment rules

Author: | Published: 11 Jan 2012
India’s bankers’ counsel have welcomed the decision to allow foreign nationals to invest directly in India ListCos. But market participants expect limited take-up from overseas investors while regional economies remain volatile.

The move, announced by the Indian finance ministry last week, aims to restore confidence in the country’s economic transformation following a year in which a weakening rupee and growing bearishness saw foreign institutional investors pull $357 million out of India in 2011 after investing $29 billion in 2010.

It is hoped that widening the investor base, and thereby increasing...