Foreign-direct-investment / Foreign Direct Investment / Incentives to FDI
FDI incentives in India can come in various forms, including:
- Higher Levels of Equity Allowed:
- Flexible regulations allowing higher levels of equity ownership for foreign investors.
- Low Rates of Corporate Tax:
- Competitive corporate tax rates to attract foreign companies.
- Tax Holidays:
- Periods of tax holidays during which companies are exempt from certain taxes.
- Double Taxation Avoidance Agreement (DTAA):
- Agreements with other countries to avoid double taxation on the same income.
- Special Economic Zones (SEZs):
- Designated zones with regulatory and fiscal incentives to promote exports and economic activities.
- R&D Support:
- Support and incentives for research and development activities.
These factors collectively contribute to making India a conducive environment for foreign direct investments.
