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Doing Business in India For Dummies® by Ranjini Manian

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Figuring Out Financing in India

When you come to the matter of funding your business in India, you can get financing from banks, specialized lending organizations, or from the capital market. Your choice depends on factors like the amount you need, the timing, and of course the interest. In this section I provide you with a few Indian financing possibilities.

In 1991, the government liberalized the number of industries that are open to foreign investment, eased approval requirements, and allowed majority foreign equity ownership. There are some restrictions and ceilings, depending on the sector and the nature of business. You can read more about options for foreign investment in Chapter 5.

As you read this section, you may realize that sourcing of funds for a foreign company in India is quite uncomplicated. Your company can adhere to its business plan and put together the best fund sourcing system for its particular situation.

Frequent changes occur in the regulations governing equity percentage permitted and the industries open to foreign participation. Companies wishing to enter the Indian market should make efforts to get the most up-to-date information before firming up business plans. Consult your financial advisors in India and stay on top of possible developments via specialized finance and business newspapers, such as the Economic Times, Businessline, or Financial Express ...

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