Uttar Pradesh Government Revamps FDI Policy to Boost Foreign Investment
The Uttar Pradesh government has launched a new initiative to promote foreign investment in the state. The cabinet meeting led by Chief Minister Yogi Adityanath approved the amendment to the incentive policy for foreign direct investment (FDI) and investment by Fortune 500 companies. The move will provide new opportunities for foreign companies and will help attract investments in the state.
Diversification in investment allowed
Under this revised policy, foreign companies will no longer have to rely only on their equity investments. Earlier, FDI only included investments by companies that invested based on their equity. Now, companies can also invest through debt and other financial sources. This change will also benefit companies that raise capital through various methods to grow their business.
Fixation of minimum investment limit
Under the new policy, the minimum limit of investment has been fixed at Rs 100 crore. By fixing this limit, the state government has made it an attractive opportunity for foreign investors. For example, if a company has only 10% equity and the remaining 90% of the money has been raised through debt, it will also get the benefit of this policy.
New name and scope of the policy
This revised policy will now be known as the "Foreign Direct Investment, Foreign Capital Investment and Fortune Global 500 and Fortune India 500 Investment Promotion Policy-2023". It covers not only equity investments but also preferential shares, debentures, external commercial borrowings, letters of guarantee, and other debt securities. This will expand and simplify the investment process for investors.
Increasing investment possibilities and benefits
With this move of the government, the possibilities of increasing foreign investment in Uttar Pradesh have increased further. This will strengthen the economic condition of the state and will also create new employment opportunities. Through this new policy, the state government has proved that it is a safe and attractive destination for foreign investors.