Foreign Investments Series 1: Handbook on Foreign Direct Investment
August 19, 2025 – By Nakshatra Gujrati
Foreign investment in India has always been a sensitive subject till LPG reforms. After independence, India adopted a highly regulated approach through the Foreign Exchange Regulation Act, 1973 (FERA), which aimed to tightly control and conserve foreign exchange. However, with the economic reforms of the early 1990s (the LPG reforms), the focus gradually shifted from conservation to promotion. This change in outlook led to the enactment of the Foreign Exchange Management Act, 1999 (FEMA), designed to facilitate rather than restrict foreign exchange and investment.
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