It would improve risk management by firms themselves by requiring standardized and efficient collection of relevant financial information. It also would enhance the ability of the government to wind down systemically important firms in a prompt and orderly fashion by providing policymakers a clearer view of the potential impacts of different resolution options on the broader financial system.
Overseas investment operations were, however, geographically concentrated in West and East Africa, Middle East, and South and East Asia with which India shared a colonial heritage and historical linkages. Sustained growth in Indian overseas investment could be seen starting during 1970s when the industrial licensing system was more stringent.