International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 2 (March-April 2026) Submit your research before last 3 days of April to publish your research paper in the issue of March-April.

Regulatory Barriers to Entry: A Critical Study of FDI Policy and FEMA Compliance for Multinational Corporations in India

Author(s) Ms. Swathi S, Dr. Mohd Tauheed Khan
Country India
Abstract Foreign Direct Investment (FDI) has a significant impact in enhancing economic growth, development of technology as well as integration of economies across the globe and in emerging economies like India. Within the last thirty years, India has introduced a number of policies reforms to increase the influx of multinationals by liberalizing investment laws and opening different fields to foreign investments. Nevertheless, amid these reforms, foreign investors usually face regulatory issues in terms of compliance requirements and the administration process. This paper is a critical analysis of regulatory hurdles to entry of multinational corporations in India with close consideration to the FDI policy framework and compliance requirements written in the Foreign Exchange Management Act. The study embraces a doctrinal legal approach premised on the interpretation of the statutory provisions, government policy documents and the regulatory guidelines issued by the government bodies like the reserve bank of India and the Department of Promotion of Industry and internal trade. The paper has suggested some of the most critical obstacles such as complicated regulations processes, industry limitations, various approval systems and documentation processes. These have a tendency to raise compliance expenses and procure administrative slackness to the multinational corporations that aim at entering the Indian market. The results imply regulatory simplification, greater transparency in policies, and enhanced co-ordination of the regulatory agencies to enhance the efficiency of the investment framework and make India a better place to be as an investment destination by the global investors.
Keywords Foreign Direct Investment, FEMA Compliance, Regulatory Barriers, Multinational Corporations, Investment Policy, India.
Published In Volume 8, Issue 2, March-April 2026
Published On 2026-04-17

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