Ease for the Multi national companies:If implemented, the move will help multinational companies to start or ramp up operations in India. For example- Apple has sought exemption from the sourcing rule to start manufacturing in India.
Overcome hindrance: Moreover it overcomes the hindrance in form that most of the local firms are yet to achieve the level of technology sophistication as required by the foreign firms for their high-end technology purchase.
Access to technology and global best practices: In the long run the foreign firms presence in India will enable the access to state-of-art and cutting-edge technology for the local firms. Besides this they will also gain experience of global best practices in the business arena.
Ease of doing business: It also enables the foreign firms to decide upon business operation in India without any bureaucratic interference. Thus will promote ease of doing business in India.