Key Considerations For Structuring An Overseas Joint Venture

1. INTRODUCTION

As India goes global, parallelly with the increasing foreign direct investment into India, there has also been a steady rise in overseas investments from India, with the outflow of financial commitments for the period April 2000 to February 2025 aggregating to USD 760 billion (seven hundred sixty billion US Dollars).¹ India's overseas investment regime has also been significantly liberalised over this period, introducing multiple 'automatic routes' for Indian companies and individuals looking to acquire shareholding in foreign companies and boosting outbound M&A.

While an Indian acquirer is permitted to acquire up to 100% (hundred per cent) of the ownership and control in foreign companies, joint ventures ("JVs") remain one of the most favoured mechanisms for strategic Indian investors entering unfamiliar markets abroad. Having a reliable joint venture partner mitigates the risks faced in navigating local customs and laws and provides access to