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Banksloanonline » Investments » Investment Policy

Investment Policy

In a layman's translation, an Investment Policy is any policy or law formulated by the government that may encourage or discourage foreign investment in the local economy. Features like currency exchange limits are true examples of Investment policy. Factors like immigration policies also affect the investment policies besides a host of other factors.Investment policies encouraging local investors as well as policies to attract foreign investors are both common across the various nations of the world. Depending upon the economic conditions of the country, as well as economic strategies of the same, the various investment policies are formulated.
Investment policies in India have greatly encouraged numerous foreign investors to come and trade here as well as continue to inspire local investors to flourish within the country. The various factors affecting the investment policies in the country can be broadly categorized as

Foreign Direct Investment policies

Post liberalization in the country, the foreign direct investments has been simplified for the benefit of investors as well as traders.

Business opportunities for domestic investments

Every sector in the Indian economy has been given equal weight age and the government has taken motivating steps and measures to attract and promote domestic investors in the country. Subsidy on fixed capital, loans at interesting rate of interest, incentives and many others have paved the path for better domestic as well as foreign investments as well in the country.

Setting up of SEZ

With several Special Economic Zones been already set up within the country and many more in the process to be functional soon, the Investment policies in this regard have no wonder borne promising results.


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