The purpose of this paper is to first study the regulation and facilitation process of foreign investments in the Indian market and another one is to examine the importance of foreign investment in the economic growth and development of the host country and also to study the critical role of Intellectual Property rights regime to attract the foreign investors and companies. In the financial growth, technical advancement and expanding the market, foreign investment plays a critical role. However for foreign investors specifically related with pharmaceuticals and technology, a robust IP regime is the key factor.

This paper outlines the different types of foreign investment as foreign direct investment and also outlines the regulatory framework done by the Indian government and the various initiatives taken by the Indian government to promote and facilitate the foreign investment and to strengthen the intellectual property regime. These initiatives includes aligning with the "Agreement on Trade Related Aspects on Intellectual Property Rights(TRIPs)" enacting the legislature reforms of "Patent (amendment) Bill 2005", "Copyright (amendment) act 2012" and launching the "National Intellectual Property Rights policy 2016".

Moreover this paper studies about the in spite of having several issues such as the delayed litigation process and the enforcement issues how India overcomes these major issues and becomes a major competitive market edge globally. Finally the paper concludes by having stressed on the strong protection needs of the IP regime to foster innovation, protect investors interests and at the same time ensure the economic growth and development of the host country.

Introduction:
In today's world domestic investment mere is not sufficient for overall development of any region. The idea of investment that will stay in the state only has no more validity. Throughout history, foreign investment is essential for the development and financial growth of the state.

The state needs the foreign investors for their various needs such as technical advancement, financial growth, expertise in various fields which the state have or have not or have in limited quantity. Foreign investment becomes the inseparable part for the development of the state in terms of raw material, access to labour and the opening of new markets for the products.

As soon as we heard the word foreign investment, the thought came to our mind that it is the investment done by foreign. And as the thought suggests it has the similar meaning as the investment done by indigenous companies or individuals into the foreign companies or assets.

In the era of gradually increasing globalised economy, the regulation and facilitation of foreign investment plays a pivotal role in the financial landscape of the country. Foreign investment elaborate the web of financial relations between the companies and the countries. It can restore and grow the companies and reshape the economy of any region. But at the same time it is the concept which raised a question on the nation's sovereignty, economic independence, cultural integrity, social and environmental concerns as well as regulatory and legal issues.

What is Foreign Investments?

Before starting what are regulations and facilitations of foreign investments in the Indian market it is essential to know what is foreign investment. Foreign Investment is an investment or allocation of money in which any entity, company or individual of a country invests in the asset or company of another country. It is indirectly a capital flow from one country to another which grants the ownership stakes to foreign investors in the domestic assets and companies.

For example some companies expand them globally such as some companies have located their factories in China & Bangladesh where the raw material and labour is quite cheaper and focused their sales in North & South America, Eastern & Western Europe such as H&M or Zara which would help in profit maximisation.

On the basis of investment foreign investment can be classified in to these types:

• Foreign Direct Investment, It is an investment made by a company or individual into the company or assets of another region in the form of controlling ownership in business either in the form of joint venture or in the form of establishing business.
• Foreign Portfolio Investment, it is investment by foreign entities and non-resident in Indian securities as government bonds, shares to ensure a controlling interest in India at an investment which is lower than FDI.
• Foreign Institutional Investment, it is an investment by foreign entities in real property and other investment assets, not to take the controlling interest but to take risk free and high gain return with quick entry and return.

Regulation of Foreign Investment in India:

The Indian government has taken many initiatives to increase the foreign direct investment in addition to forming policies to ease the investment for doing business in India. India has entered in a Comprehensive Economic Partnership Agreement(CEPA) with the government of United Arab Emirates & with Australia, Economic Cooperation and Trade Agreement (ECTA).

The Department for Promotion of Industry and Internal Trade also launches the National Logistic Policy 2022 under the PM Gati Shakti programme to develop the technological advanced, integrated, cost efficient & trusted logistic system in the country. In addition, the Indian government has also started programmes such as "Make in India" "Atma Nirbhar Bharat" to encourage the foreign direct investment in India for economic growth & development.

Indian foreign investment governed by Foreign Exchange Management Act 1999(FEMA) and the regulation therein with an objective of "an act to consolidate and amend the laws relating to foreign exchange with an object of facilitating external trade and payments as well as the promotion of orderly development & maintenance of foreign exchange in India".

For the regulation of foreign exchange the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations 2000 & Foreign Exchange Management (Transfer or Issue of Security be a Person Resident Outside India) Regulations 2017 which was in supersession of Notification No. FEMA 20/2000-RB and Notification No. 24/2000-RB Both dated 3 May 2000 were published by the Reserve Bank Of India(RBI).

Moreover in 2010 Department for Promotion of Industry and Internal Trade (DPIIT) earlier known as Department of Industrial Policy & Promotion (DIPP) had put in place a policy framework that consolidated the essential sectoral and departmental requirement which must be complied with by the non-indigenous investors investing in India. The Department of Industry Policy & Promotion is the nodal department for Foreign Direct Investment FDI) to form policies, maintenance and management of Foreign Direct Investment based on reports issued by Reserve Bank of India.

Additionally, Securities & Exchange Board of India (Foreign Portfolio Investors) Regulations 2019 read with Schedule II of Foreign Exchange Management (Non Debt Instrument) Rules 2019 (NDI rules 2019) allows the investment in equity instruments of Indian companies by the foreign portfolio investors(FPIs) and also prescribed the form and manner in which the investment by FPIs can be classified into foreign direct investment & foreign portfolio investment.

Facilitation of Foreign Investment in India:

Facilitation of foreign investment refers to the procedural aspect to make it easier to establish & expand the businesses and operations of foreign investors in the recipient country. This process encourages the investors by creating a simplifying administrative procedure, reducing regulations as well as enhancing the transparency. The objective of facilitation is to attract the foreign investors and to promote economic growth & development.

The World Trade Organisation members launched an initiative, Investment Facilitation for Development in 2017 with an aim to develop a global agreement to improve the investment and business climate and to ease for the investors to invest in business and expand their business. This is a plurilateral agreement and open to all WTO members. Unlike the multilateral, plurilateral agreement is binding in nature for signatory WTO members.

The Foreign Investment Facilitation Portal (FIFP) administered by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, is a single point interface for the investors to facilitate the foreign direct investment. It is a window to ease the application process in addition to e-communication, reduced paperwork, quicker processing as well as e-mail/sms alert and many more.

Significance of strong IPR regime for foreign investors:

Foreign investors are continuously looking for a robust IPR regime so that their investment in the host country will be a profit making not a losing one. With a robust IPR regime host country the investors assured that their innovation, brands and creation will be protected from imitators and infringers. So the robust IPR regime is mandatory to attract and retain the foreign investors. Some of the key significance of strong IPR for foreign investors are as follow:-

Safeguarding competition and maintaining a competitive edge, Many foreign investors specifically in pharmaceuticals, technology & biotechnology sectors invest a hefty amount for research and development. So the investors wanted to have a strong IPR regime to protect their investment and allow companies to have exclusive rights over their investment and without having such assurance in the host country, investors hesitate to invest where their inventions could be imitated without any legal recourse. Moreover the IPR such as trademarks often provide companies the advancement in competitive markets. When the IPR are protected companies can maintain their position.

Attracting advanced technology and knowledge based industry, Multinational companies such as Apple, Samsung are most likely to transfer or invest their most advanced technology in a country with robust IPR regime. This tech investment usually benefits the host country in terms of innovative process and advancement. Without having a strong IPR regime investors are always under the fear of misappropriation.

Boosting investors confidence and market stability, investing into a new market leads to several risks for the foreign investors but having robust IPR regime may mitigate some of these risks by providing the legal certainty and when investors know that there is little to no risk of imitation or misappropriation then greater investment inflows. Moreover companies will forward towards the long term investment when there is robust legal protection for their IPR regime.

Fostering innovations and stimulation of economic growth, usually when foreign companies invest in any host country then they collaborate with the host country's firms, research institutions and universities and share the knowledge and technology which enhance the local innovations which enhance the economic growth and development of the host country.

Protection of brand identity and reputation, the foreign companies specifically in consumer goods, luxury products and technology, brand identity is the most protected feature not to have imitation as well as counterfeiting. Robust IPR regime facilitates the company to ensure that consumers have the authenticated product which builds trust in the brand and forms market stabilisation and trust too.

Reduction in legal uncertainty and disputes, to reduce the legal Intellectual Property disputes and legal uncertainties it is necessary to have a robust IPR regime, the robustness provides the predictable legal environment in which the business may develop as well as set up too. Foreign investors hesitate usually to invest in a market where counterfeiting, piracy, IP theft exists.

Challenges associated with IP protection for Foreign Investors:

According to an article "The challenge of protecting Intellectual Property" published in WIPO Magazine published by Baroness Neville-Rolfe, then Minister for Intellectual Property, Department for business, Energy and Industrial strategy, United KIngdom in Nov. 2016 , lack of tackling infringement material offline as well online, lack of consumer education and lack of tackling new modes of infringement are the main challenges in United Kingdoms for the IP protection.

In India, there are several challenges related to IP protection which affects the foreign investors, innovators and businesses. Although the country has various laws to strengthen the IPR regime, there are still numerous obstacles for effective IP protection. These hidden obstacles are due to lacuna in laws, non enforcement of rules and regulations and also due to continuously growing technology and market. Some key challenges are:-

Weak enforcement mechanism, though there are various laws related to IPR regime protection, there is lack of enforcement. The law enforcement agencies often lack training and expertise especially in Intellectual property related laws. Moreover Indian Judiciary are overburdened as currently 44817952 are the total number of cases pending out of which 28608165 number of cases are more than one year old. Due to which there is significant delay in resolving the IP related issues.

Counterfeiting and piracy, India has one of the biggest market of counterfeited goods specifically electronic goods & pharmaceuticals. As a result of which companies are seeing a gradual decrease in their brand awareness and customer satisfaction. Moreover with technological advancement and the excess use of the internet, the piracy of online digital content such as music, software and e-book are increasing gradually. Due to these scenarios the foreign investors are not keen to invest in a country like India.

Inconsistent IP enforcement, another major problem which the investors face is the inconsistency in enforcement of IPR regime. Most of the developing countries have legislated its own IP laws but due to lack of skills, resources and enforcement agencies the proper enforcement of IP laws has not been established which creates the challenges for a business entity that operates across multiple regions.

Cost factor of IP litigation, Usually the IP litigation may take several years depending upon the complexity of the case so the companies use the non traditional dispute resolution practice which is expensive due to arbitration fees. In addition to cost and time, if the IP of a company challenges then it would be disastrous for the reputation of the company.

Backlogs in IP registration, as Indian IP offices lack staff and resources which causes slow processing for IP registration which discourages the inventors and creators.

Global perspective, despite having continuous improvement in the protection of the IPR regime, India has weaker IP protection in comparison to developed countries which limits the foreign investment and trade relations. Although India is a signatory country of TRIPs agreement to achieve the global standards, its stance of compulsory licence in a legal friction with the trading partners.

Steps taken by India for IP protection in context of foreign investment:

To attract the foreign investment, technical advancement and innovation as well as for economic growth, India has taken a significant step to strengthen its Intellectual Property protection regime. To make India more attractive to the foreign investors, during recent years India has adopted various legislative, administrative and policy measures. Alignment with various international IP treaties is a major step of India towards the robust protection of the IP regime.

The agreement on Trade Related Aspect of Intellectual Property Rights came into force on 1 Jan 1995 but according to the "Transitional Arrangements" provided in article 65 of the TRIPs agreement, India became fully compliant of the agreement in 2005. The TRIPs agreement was the key agreement internationally for the WTO countries. After that Indian parliament has passed the Patents (amendment) Bill 2005 to comply with the obligations under the TRIPs agreement of WTO.

In the similar context there was an amendment made in 2012 in Copyright Act 1957 for protection of digital content and liability of internet service providers, ensuring right to royalties for authors and music composers. Further the legislature enacted the Designs amendment rules 2021 to facilitate the process of design registration and to have transparency in the process fee.

further, Indian government with the aid of "Ministry of Commerce & Industry" and "Department of Industrial Policy and Promotion" has started the "National intellectual property rights policy 2016" for the stimulation of a dynamic, vibrant and balanced Intellectual Property rights system in India for the benefit of all; an India where IP promotes advancement in science and technology, art & culture, traditional knowledge and biodiversity resources and knowledge owned is transformed into knowledge shared.

Moreover, the Indian government started the schemes to facilitate the start-ups and micro, small and medium enterprises. Online portals for the patent, trademark and copyright registration have also been started by the government. India has also established the more efficient and special courts to handle the matters related with protection or infringement related issues of IP regime.

India also has several Bilateral Agreements to improve IP protection and enforcement with the countries such as Preferential Trade Agreement between the MERCOSUR & the Republic of India, Agreement between Government of Republic of India and Government of Republic of Trinidad and Tobago, Memorandum of understanding between Switzerland and India and many more.

Conclusion:
Ultimately, the financial and economic growth and development majorly depends upon the foreign investment. The facilitation and regulation of the foreign investment is critical to have technical innovation and advancement, economic growth and international collaborations. Though the protection of intellectual property regime is the primary concern for the foreign investors, India has taken this concern seriously and taken major steps and significantly formed the legislations, treaties and agreements to strengthen the protection of its IP regime such as from the adoption of TRIPs agreement to the amendment in various legislation, India has travelled a long distance.

By taking the initiatives such as National Intellectual Property Rights Policy 2016, establishing the efficient and special courts for intellectual property rights and streamline of IP registration process, India tends to attract the foreign companies and investors while assuring at the same time that the innovations and creations remain safe from the counterfeiting, imitation as well as from the misappropriation. In spite of having the issues such as the enforcement of IP rights, delay in litigation, India is forwarding towards creating an investment friendly system for foreigners while striving at the same time India to strengthen its position in global investment destination.

In summary, India's gradually developing approach for foreign investment and protection of Intellectual property regime shows its commitment towards creating a more favourable environment for the investors. On one hand the foreign investment is essential for economic growth and development of a country similarly on the other side robust protection of the IP regime is equally critical to attract the investors. As India continuously enhances its IP regime, it itself becomes the competitive global hub for investors and innovations which support the long term investment, growth and collaboration globally.

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