A ROLE OF INTERNATIONAL COMMERCIAL LAW IN FACILITATING FOREIGN DIRECT INVESTMENT: A CRITICAL ANALYSIS

AUTHOR – ADITI SINGH BHATI* & AQUEEDA KHAN**

* STUDENT AT AMITY LAW SCHOOL

** PROFESSOR AT AMITY LAW SCHOOL

BEST CITATION – ADITI SINGH BHATI & AQUEEDA KHAN, A ROLE OF INTERNATIONAL COMMERCIAL LAW IN FACILITATING FOREIGN DIRECT INVESTMENT: A CRITICAL ANALYSIS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (7) OF 2025, PG. 1027-1041, APIS – 3920 – 0001 & ISSN – 2583-2344

THE CONCEPT OF FOREIGN DIRECT INVESTMENT

3.1          Introduction

Since the liberalisation policy of 1991, India has increasingly focused on policy reforms and is now considered to be one of the most favoured destinations for foreign investment. During the past year, in a bid to enhance India’s global competitiveness by creating a favourable investment climate, the Government of India (central government or DPIIT) has allowed foreign direct investment (FDI) up to 100 per cent under the automatic route in the telecommunications sector2 in line with previous efforts towards relaxing FDI caps in certain sectors, such as defence and insurance, and up to 20 per cent under the automatic route in the Life Insurance Corporation of India (LIC) (see further in Section II.i, below). The government is actively trying to reduce the compliance burden, as evidenced by the soft launch of the National Single Window System (NSWS) and the creation of a simplified governance regime through amendments to the Insolvency and Bankruptcy Code, 2016, such as the introduction of a pre-packed insolvency process.