Abstract

The core of this caselet is the opening up of the Indian market for foreign investments. It explains how the Government of India tried to protect Indian joint venture partners through Press Note 18. It focuses on the misuse of the provisions of this Press Note by Indian joint venture partners and discusses the replacement of Press Note 18 with Press Note 1. The impact of the scrapping of Press Note 18 on Indian firms is also examined.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Liberalization of the Indian market for FDI
• Recommendations of FIPB and the issue of Press Note 18
• Misuse of provisions of Press Note 18 by Indian firms
• and Scrapping of Press Note 18 and replacement with Press Note 1.

Keywords

Foreign direct investments (FDI), joint ventures (JVs), Government of India (GoI), Foreign Investment Promotion Board (FIPB), information technology, international financial institutions, mining, collaborations, Project Approval Board (PAB), arbitrator, Press Note 18, Press Note 1