The year 1991 was a watershed year in the economic history of the Republic of India, when the country initiated its liberalization and economic reforms programme under the New Industrial Policy of 1991. Since then, the economic reforms initiated in 1991 have grown in scope and scale and yielded increasingly salutary dividends. The industrial policy reforms have substantially reduced industrial licensing requirements, removed restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment.
India’s steady economic liberalization and its embrace of the global economy have been key factors in attracting foreign direct investment. Today, India has probably one of the most open and liberal investment regimes among the emerging economies. The Special Economic Zones Act 2005 provides an internationally competitive and comfortable environment in which to manufacture and/or provide services for export out of India. As per data from the International Monetary Fund, India’s gross domestic product (GDP) in terms of purchasing power parity stood at USD 4.46 trillion in 2011, marginally higher than Japan’s USD 4.44 trillion, making it the third biggest economy after the United States and China.
India’s steady economic liberalization and its embrace of the global economy have been key factors in attracting foreign direct investment. Today, India has probably one of the most open and liberal investment regimes among the emerging economies. The Special Economic Zones Act 2005 provides an internationally competitive and comfortable environment in which to manufacture and/or provide services for export out of India. As per data from the International Monetary Fund, India’s gross domestic product (GDP) in terms of purchasing power parity stood at USD 4.46 trillion in 2011, marginally higher than Japan’s USD 4.44 trillion, making it the third biggest economy after the United States and China.
India is a member of the WTO (World Trade Organization), SAARC (South Asian Association for Regional Co-operation) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation).
The legal framework for business organizations is based mainly on English common law. Companies in India are regulated by the Indian Companies Act 2013 (CA 2013).
The CA 2013, which replaces the Companies Act of 1956, was passed in the Rajya Sabha on 8 August 2013 (during the monsoon session of the parliament), and the president gave his assent on 29 August 2013. As of now only 100 sections of the 2013 Act have been brought into force. On 14 December 2016, the Ministry of Corporate Affairs issued a notification (Notification No. G.S.R. 1134(E)) to bring the following into effect from 15 December 2016:
