The Union government on Monday, in consultation with the Reserve Bank of India (RBI), strengthened overseas investment rules for Indian entities to impart greater clarity and improve the ease of doing business. As Indian businesses integrate with the global economy, clear rules of engagement would help. Since India doesn’t have full convertibility on the capital account, it is important for the government and the RBI to monitor overseas transactions by Indian entities because of their wider implications for currency management and financial stability. With improvement in macroeconomic fundamentals over time, the policy establishment has made it easier for Indian entities to acquire businesses and other assets abroad. The revision in the regulatory framework is an extension of this process and is aimed at bringing clarity to enable Indian businesses to integrate with the global value chain.
First Published: Wed, August 24 2022. 00:16 IST