Government Policies

Apart from the above-mentioned advantages, favorable policies of Indian government are also a huge advantage for foreign companies. Government is pulling a lot of FDI (foreign direct investment) into the country.

• The Indian government recognizes that Information Technology will influence economic development extensively in the future. IT is a pat of government's national agenda and all policies are driven to achieve maximum benefit to their industry.

• The liberalization and deregulation initiatives taken by the Indian government are aimed at supporting growth and integration with the global economy. The reforms have reduced licensing requirements and made foreign technology accessible. The reforms have also removed restrictions on investment and made the process of investment easier.

• The government is actively promoting FDI, investments from NRIs (Non-Resident Indians) including Overseas Corporate Bodies (OCB's) owned by the NRIs. FDI can be brought in through the automatic route, based on powers accorded to the Reserve Bank of India.

• Till 1994, DOT was the sole provider of basic telecom services in India. The new National Telecom Policy has opened the field for private participants.

• Amendments have also been proposed in the Indian Evidence Act, Indian Penal Code and the RBI Act. The mechanism of digital signature has been proposed to address the issues of jurisdiction, authentication and origination.

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* Contributed by -
Shuchi Singla,
Global Business Operations, Semester-11,
Shri Ram College Of Commerce,
University Of Delhi.