India FDI rules vexing foreign investors

Author: Brian Yap | Published: 28 Sep 2016

India’s FDI regime is increasingly taking the form of difficult conditions rather than a simple approval requirement according to speakers at this year’s IFLR India M&A Forum in Mumbai.    

While major steps have been taken by the Indian government to lower the overall threshold for foreign direct investment, new challenges are now facing offshore investors.

"The level of complexity (in terms of FDI) has increased manifold," said Shishir Vayttaden, partner at Cyril Amarchand Mangaldas in Mumbai. He argued that the need for sophisticated advice and for liaising with the right agencies is greater now than it was for foreign investors in India.

"That is why even when a business looks attractive, you don’t see stable lasting money following in under the current...