January 6, Washington DC: The Indian government has announced that they will open up their stock market to individual foreign investors. The government statement also said that the reforms would come into effect on January 15, 2012. This decision is expected to encourage overseas investment. Among other countries, U.S. investors will also stand to gain from this decision. The Alliance for US India Business (AUSIB), who has been instrumental in strengthening bilateral trade efforts between U.S. and India, has welcomed the decision.

Sanjay Puri, President of AUSIB, commended the decision and said, “India urgently needs FDI and one of the ways is for individuals to invest. There is a lot of interest in the Indian economy and for foreign individuals to invest in this economy. We are happy that the Indian government has made changes the changes to capitalize on this interest. "

Over the last decade, the Indian economy has been attracting more investors than ever. A country that is now on the rapid road to development, did not allow foreign investors into either institutional schemes or mutual funds, the modes of investing in the stock market. As the government statement elaborates, the decision was made to encourage the flow of foreign funds and to provide more depth to the country's capital market.

About AUSIB: Alliance for U.S. India Business (AUSIB) is a leading non-profit trade association that offers a pathway to help your business succeed in the United States and India. AUSIB seeks to boost investment flows and trade between the two countries and open new channels of communication between business and government leaders. Visit us at www.ausib.org.

Follow us on Twitter, Facebook and LinkedIn.

###