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electrical equipment.
Services.
Drugs and pharmaceuticals.
cement and gypsum products.
metallurgical industries.
Telecommunications.
Fuels.
chemicals sectors.
FDI Equity Inflows by Region
Why India Gets Limited FDI
poor state of the country’s
infrastructure.
acute labour market rigidities.
outside urban areas highlights the
problem of bad infrastructure.
ports, airports; both which are either too
small or bad when compared to world-
class ports or airports.
How to correct perception gaps that
may hinder FDI inflows
image-building activities promoting the
country and its regions and states as
favourable locations for investment.
investment-generating activities, personal
selling and establishing direct contacts
with prospective investors.
investment-service activities tailored to
prospective and current investors’ needs.
raising the realization ratio (i.e.percentage
of the FDI approvals translated into actual
flows).
desperate need to create a deep
talent pool.
advocate a policy of targeted
promotion.
administrative barriers at the state
level as well.
India should continue to work
towards developing a deep and liquid
corporate debt market .
CONCLUSION
India needs massive investments to sustain
high-quality economic growth, particularly in
the energy and infrastructure sectors (both
physical and social).
What India needs is to put in place a
comprehensive development strategy, which
includes being open to trade and FDI.
ultimate goal of permanently eradicating
poverty over the medium and longer-terms
India should consciously work
towards attracting greater FDI into
R&D as a means of strengthening the
country’s technological prowess and
competitiveness .
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