India's Economic Policies are designed to attract significant capital inflows on a sustained basis and to encourage technology collaborations between the domestic & foreign entities. The Statement on Industrial Policy issued on July 24, 1991 recognises the role of Foreign Investments considering the maturity of the Indian Economy and the attendant advantages it is expected to bring in the form of technology transfer, marketing expertise, introduction of modern managerial techniques and new possibilities for promotion of exports. Policy initiatives taken over the last few years have resulted in flows of foreign investment in diverse sectors of the economy.

The FDI regime has been progressively liberalized during the course of 1990s (particularly after 1996). Most of the restrictions on foreign investment have been removed & procedures simplified. With limited exceptions Foreigners can now invest directly in India either wholly by themselves or as part of a joint venture.

The Ministry of Commerce & Industry has expanded the list of industries eligible for automatic approval of foreign investments and, in certain cases, raised the upper level of foreign ownership from 51 to 74 percent and further in certain sectors/activities to 100 percent. Today there are only few industries where foreign investment is prohibited.

Institutions incorporated or established outside India and making investments in Indian securities (shares, debentures, mutual funds, government securities etc.) are termed as Flls. They are allowed to invest both in primary and secondary markets subject to defined limits and are also required to be registered with the Securities and Exchange Board of India (SEBI) and comply with the exchange control regulations of the Reserve Bank of India (RBI).

PORTFOLIO INVESTMENTS BY NON RESIDENT INDIANS (NRIS)

NRls are allowed to invest in shares up to 5% of paid up capital of an Indian company and the total NRI holding cannot exceed 10% unless extended to a maximum of 24% by a General Body Resolution. Investments can be both on repatriation or non-repatriation basis. Further details of Fll and NRI investments are available at www. rbi.org.in and www. sebi.gov.in.

Under the liberalized exchange control environment of the Foreign Exchange Management Act (FEMA) 1999, the emphasis of the Gol has shifted to the facilitation of external trade and the orderly development of the forex market. India's exchange reserves have phenomenally increased to around US $ 164 billion. The Rupee is fully convertible on the Current Account and prior approval of RBI is necessary only for foreign currency above certain limits for the following purposes:

Holiday travel over US$10,000 p.a. Gift /donation over US$5,000 / US$10,000 per beneficiary p.a. Business travel over US$25,000 per person. Foreign studies as per estimate of institution or US$100,000 per academic year. Architectural / consultancy services procured from abroad over US$1,000,000 per project. Remittance for purchase o Trade Mark / Franchise. Reimbursement of pre incorporation expenses over US$100,000. Remittances exceeding US$25,000 p.a. (over and above ceilings prescribed for other remittances mentioned above) by a resident individual for any current account or capital account transaction.

The National Environment Policy approved by the Union Cabinet in May 2006 mainstreams Environmental concerns, strategies and action plans in all developmental Activities. India believes that only such development is sustainable that respects ecological constraints and the imperatives of justice. Accordingly the overall objectives of the policy that is applicable to all States including West Bengal are focused on:

Conservation of Critical Environmental resources Livelihood Security for the Poor Judicious Resource Use Integration of Environmental concerns into policies, plans, projects for economic and social development Efficiency in use of Environmental Resources Environmental Good Governance Partnerships with civil society and communities to enhance resource flows

The Environment Protection Act 1986 was legislated in India, which lays down the broad framework of governance in this area. The GoWB's policy is to strike a balance between the needs of development and the preservation and conservation of environment and natural resources. The GoWB's Policy Statement made as far back as June 1995 seeks special emphasis and thrust on:

Control over pollution problems created by organized industries Control over water, air and noise pollution within permissible limits Protection of rivers, water bodies etc from encroachment Preservation, Protection and Restoration of the coastal zone of some 220 kms Improvement of the physical environment of cities and towns Promotion of bio diversity and preservation of forests and wild life Environmental impact assessments prior to location of industries, infrastructure and urban development Public private partnerships and working relationships with societal organizations to generate awareness and active participation in environmental protection Coordination among the various Ministries and Departments of Government to ensure appropriate action plans for policy implementation

The West Bengal Pollution Control Board is the Statutory Authority, which is entrusted with the responsibility of implementing environmental laws and regulations within the State. The West Bengal Bio-Diversity Board advises the GoWB on conservation of bio-diversity, sustainable use of its components and equitable sharing of the benefits of the use of biological resources. Industries have been classified into certain categories keeping in mind the requirements of environmental pollution. Ordinary and Special Red categories (highly polluting) cannot be set up within Kolkata Metropolitan Area, and Orange categories (moderately polluting) not within Kolkata or Howrah Municipal Areas but permissible within Industrial Estates within those areas. Green category industries can be set up in any area subject to pollution and site clearances. Apart from these there is an exempted category that can be set up in any area and only requires local site clearance by the local body.