Apart from the quest for profitable business opportunities, overseas presence enriches the Indian corporate in adapting itself to global competition and imbibing the best management practice. It is also expected to serve the strategic interests of the economy as well. With this in view, the regulatory regime has been fairly encouraging.
For a capital-scarce economy like India, the cumulative overseas investment position at about USD 140 billion is no small achievement. At the height of Rupee volatility last year, as a purely temporary measure, RBI had reduced the “automatic route” investment limit from 400% of the Indian company’s net worth to 100% – a measure mistakenly dubbed by some as capital control.