Jagran Josh Logo

Foreign Capital

06-OCT-2014 17:05

    Foreign capital can be acquired either in the form of concessional support or non - concessional flows or foreign investment. Concessional assistance comprises of grants & loans obtained at low rates of interest together with long maturity period. Such assistance is provided usually on bilateral basis, government to government or through multi-lateral agencies like International Development Association, World Bank etc. Non-concessional assistance comprises chiefly external commercial borrowings or loans from other agencies on market terms and deposits obtained from non - residents.

    Need for Foreign Capital

    1. Sustaining a high level of investment.
    2. The technological gap.
    3. Misuse of natural resources.
    4. Undertaking the initial risk
    5. Expansion of basic economic infrastructure.
    6. Upgrading in the balance of payments position

    Indian Government’s Policy towards Foreign Capital

    1. No favoritism between foreign & Indian capital.
    2. Full opportunities to earn profits
    3. Guarantee of compensation

    Sectors in which Foreign Direct Investment is prohibited are:

    1. Multi Brand Retail
    2. Atomic energy
    3. Lottery business
    4. Gambling & betting
    5. Business of chit fund
    6. Nidhi company
    7. Trading in transferable development rights
    8. Activity / Sector not opened to private sector investment

    FERA and FEMA

    Export Promotion Policies: An Overall View

    Read more:Foreign Capital , FDI

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

    Latest Videos

    Register to get FREE updates

      All Fields Mandatory
    • (Ex:9123456789)
    • Please Select Your Interest
    • Please specify

    • ajax-loader
    • A verifcation code has been sent to
      your mobile number

      Please enter the verification code below

    Newsletter Signup
    Follow us on
    This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK