Foreign Investment

Opportunities for foreign investments have increased in Uttarakhand with the growth of its industries. With the growth of the industries, foreign investment in Uttarakhand has become an active domain. Foreign investment is defined as the investment made to acquire lasting interest in enterprises outside one's own economy. In this context, it can be said that with growth of the economy of Uttarakhand, NRIs are taking a keen interest in the Uttarakhand's foreign investment.

Talking about foreign investment of Uttarakhand, it can be said that foreign investment consists of a parent enterprise and a foreign affiliate that form a transactional corporation. Moreover, in order to qualify as Foreign Direct Investment, the investor must afford the parent enterprise control over its foreign affiliate: this rule of foreign investment is also applicable for the foreign investment in Uttarakhand.

Foreign investment at Uttarakhand has become active, due to the following reasons:

• Foreign investors and NRIs can undertake imports into and exports from Uttarakhand, and set up a joint venture,
• They shift the production base in Uttarakhand, a state rich in mineral resources, etc.

Further, foreign investment have become easier in India, which has in its turn eased the foreign investment market in Uttarakhand. Some of the factors in this effect can be summed up as follows:

• Foreign exchange controls have been eased
• Companies are allowed to raise funds from overseas securities markets
• Foreign investors can remit funds from Indian operations etc.

These some of the reasons for the expansion of foreign investment in Uttarakhand.