There has been a significant liberalisation of the policy framework with regard to capital outflows over the past few years. Each country has to design its policy regime for capital outflows keeping in view the specific country context, especially characteristics of the real sector, and not merely the contextual level of inflows and extant absorptive capacity of the economy.
First, the current regime of outflows in India is characterised by liberal but not incentivised framework for corporates to invest in the real economy outside India, including through the acquisition route.