Since the beginning of economic reform in the early 1990s, the Indian government has revised relevant industrial policies, simplified government approval procedures and reduced many restrictions on foreign investment in order to attract foreign investment and introduce foreign advanced technology. In recent years, India has increased its efforts to attract foreign investment and achieved certain results, but there is still a big gap compared with China. According to statistics, from 20001to 2002 (India's fiscal year is from April of that year to March of the following year), India actually absorbed 66,543.8+3 billion US dollars of foreign direct investment, and from 2002 to 2003 it was 4.66 billion US dollars *. In order to achieve the goal of 8% annual GDP growth during the Tenth Five-Year Plan period (only 5.35% during the Ninth Five-Year Plan period), India plans to absorb an average of 7.5 billion US dollars of foreign direct investment every year from 2002 to 2007.

The Foreign Exchange Control Law1999 (FEM) and Industrial Policy 199 1 are the guiding laws and regulations for foreign investment in India. Later, according to the Foreign Exchange Control Law, the Regulations on Foreign Exchange Control (Transfer or Issuance of Shares by Foreigners) was formulated. Taxation and joint venture management still follow the Indian income tax law 196 1 and Indian company law 1956. For relevant policies and approval procedures, please refer to the website of Reserve Bank (http://www.rbi.org.in) and the website of the Industrial Assistance Division of the Industrial Policy and Promotion Department of the Ministry of Industry and Commerce (http://dipp.nic.in).