TABLE OF CONTENTS

S.

TOPIC

Pg. No.

1.

INTRODUCTION AND PLAN OF STUDY

1-2

2.

INVESTMENT ROUTES TO INDIA

4-4

3.

PROBLEMS FACED BY ENTREPRENEURS

4-7

4.

WHY ONE SHOULD INVEST IN INDIA?

7-9

5.

FOREIGN DIRECT INVESTMENT IN INDIA

9-10

6.

EASE OF DOING BUSINESS REPORT BY WORLD BANK

10-11

7.

RECENT GOVERNMENT INITIATIVES

11-14

8.

SUGGESTIONS TO INCREASE INVESTMENT IN INDIA

14-15

9.

CONCLUSION

15-15

10.

BIBLIOGRAPHY AND WEB REFERENCES

16-16

No

1|Page

CHAPTER 1

INTRODUCTION AND PLAN OF STUDY

1. BACKGROUND
If size of the market and growth potential are two important factors in attracting
investments in an economy, then India potential is widely acknowledged.
An investment scenario is a term that is used to describe the projection of the merits and
demerits of potential investment opportunities. The investment scenario can be applied to
a potential investment, or it may be applied retroactively to an existing range of
investments with a view of analyzing the short-term and long-term profitability of such
investments.
This Project is an attempt to discuss in detail the various factors responsible for affecting
the Foreign Investment in India along with other issues which are relevant while
considering the increasing or decreasing trend in investment. The project also takes into
consideration various reforms and policies undertaken by the Indian Government to
increase and attract foreign countries to start a business or to invest in India.
India is the fourth largest economy in the world, and has the second largest GDP among
developing countries, based on purchasing power parity. Until the economic reforms in
1991, the Indian economy was characterized by highly regulated business environment
with high tariffs. Later due to economic reforms that were highly supported by
successive governments have ensured. Indias position in the global map as the favoured
investment destination with open and liberal police. External trade has been liberalized,
tariffs steadily lowered, import controls progressively reduced and tax rates have been
rationalized and are at present are lowest in the world.
There exists today, a strong political consensus on the current economic policies not only
at the centre level but amongst all the states that ensured continuation and strengthening
of investor friendly policies.

2. RESEARCH QUESTIONS

Why one should invest in India?

What are the various entrepreneurship problems faced by foreign countries when they
invest in India?
What is the stand of India in Ease of Doing Business Report and what does this
Report reveals about the present condition of Investing Capacity of India?
What are the various Indian Government Policies and Measures to boost FDI?

3. OBJECTIVES

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To find out the main problems faced by entrepreneurs when they invest in India and
to understand the usefulness of steps taken by government to make doing and starting
up of business easier.
To find out the Advantages of Investing in India.
To understand the Make in India initiative of NDA government in recent years.
To suggest some measures which can further attract foreign investment in India.

4. RESEARCH METHODOLOGY
Research Methodology in the making of this Project will be Doctrinal Research
Methodology. This Methodology will be best suited for the Topic of the Project.
Researchers who deal with this type of research mainly concern with the philosophy of
Topic involved. Besides reference from books and journals, documents are given due
weightage which provided the needful contribution required in the proper completion of
the research. Above all, views advocated by eminent personalities is given due
importance.

5. ANALYSIS AND INTERPRETATION

It is a well-known fact that India has been one of the fastest growing economies over the
past decade, averaging around 6 per cent GDP growth second only to China. As per
Global Competitiveness Report 2000, India has improved its position from 52 to 49 out
of 59 Countries. The noteworthy feature is that India is ranked No. 5 as far as export
promotion is concerned in the growth competitiveness ranking. Among the other growth
competitive advantages that India enjoys are with respect to investment rate (14),
financial risk rating (14) stock market (18) and national savings rate (20).
In the current competitiveness advantages that India enjoys is licensing of technology
where it has been ranked first. India has fared well in indices like availability of
suppliers (8), median income tax rate (3), value added tax rate (12), top marginal tax rate
(12) etc. This clearly shows that India is in good company in as far as tax reforms are
concerned and are more or less in line with international rates except for import tariff.
The Indian economy has witnessed a paradigm shift since the last decade and is on a
robust growth trajectory. Today, the Indian economy boasts a stable annual growth rate,
booming capital markets, and rising foreign exchange reserves.
According to the Asian Development Bank's (ADB) report titled Asia Capital Markets
Monitor, the equity market in India, with a market capitalization of approximately US$
600 billion, has emerged as the third-largest equity market, behind China and Hong
Kong, in the emerging Asian region.

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All these data clearly implies that so far only Multi-National Companies (MNCs) with
their vast resources, know-how and the right connections have been the major
beneficiaries of this phenomenal growth in India. Small and Medium Enterprises (SMEs)
and Entrepreneurs are just becoming aware of the growth story of India.

6. CONCLUSION
Today, the Foreign Direct Investment (FDI) policy in India is widely reckoned to be
among the most liberal in the emerging economies and FDI up to 100% is allowed under
the automatic route in most sectors and activities.
In addition to (FDI), Foreign Institutional Investment (FII) is also flowing into India.
Qualified foreign entities (other than those predominantly owned by non - resident
Indians) are seeking to undertake.

7. CHAPTERISATION

CHAPTER 1: INTRODUCTION AND PLAN OF STUDY

CHAPTER 2: INVESTMENT ROUTES TO INDIA
CHAPTER 3: PROBLEMS FACED BY ENTREPRENEURS
CHAPTER 4: WHY ONE SHOULD INVEST IN INDIA?
CHAPTER 5: FOREIGN DIRECT INVESTMENT IN INDIA
CHAPTER 6: EASE OF DOING BUSINESS REPORT BY WORLD BANK
CHAPTER 7: RECENT GOVERNMENT INITIATIVES
CHAPTER 8: SUGGESTIONS TO INCREASE INVESTMENT IN INDIA
CHAPTER 9: CONCLUSION

CHAPTER 2

INVESTMENT ROUTES TO INDIA

A foreign company planning to set up business operations in India, can invest in India only
through the following options:
1) As an Indian Company: A foreign company can commence operations in India by
incorporating a company under the Companies Act, 1956 through Joint Ventures or Wholly
Owned Subsidiaries.

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Joint Venture with an Indian Partner
Foreign Companies can set up their operations in India by forging strategic alliances with Indian
partners. Joint Venture may entail the following advantages for a foreign investor:

Established distribution/ marketing set up of the Indian partner

Available financial resource of the Indian partners
Established contacts of the Indian partners which help smoothen the process of setting up
of operations

Wholly Owned Subsidiary Company

Foreign companies can also to set up wholly owned subsidiary in sectors where 100% foreign
direct investment is permitted under the FDI policy.
2) As a Foreign Company: Foreign Companies can set up their operations in India through

Liaison Office/Representative Office

Project Office
Branch Office

Such offices can undertake any permitted activities. Companies have to register themselves with
Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

CHAPTER 3

PROBLEMS FACED BY ENTREPRENEURS

Problems Faced by Entrepreneurs while starting Business in India are

Bureaucracy
Corruption
Labour
Regional Sentiments
Grey Market and Counterfeit Goods and
Social Capitals

Not everybody will call the factors discussed here problems, but these can lead to problems if
not managed properly. These are the factors we have to take into account if we are operating in
India. If managed correctly, these can be advantages; otherwise these can lead to serious
problems for the enterprise.

5|Page
Bureaucracy:
The word Bureaucracy refers to the rule of the office.
Public offices are set up for the good of the people and the officials manning the posts are
referred to as public servants. But, if left unchecked, these public officials can become selfserving and corrupt. Firstly, there are a large number of procedures to be followed and clearances
to be obtained to start and operate a business. Secondly, each of these procedures can take an
inordinately large amount of time.
Corruption:
While under no circumstances, corruption can be justified, it is a bitter truth that it is rampant in
many government departments of India. Even private sector is not spared by it. As it hampers
growth of the business, it is a challenge for budding entrepreneurs.
For example, the bank is not releasing money even though it has sanctioned release of funds.
There might be some official who has raised an unwarranted objection. In such cases, some
people are tempted to grease the palms to get things flowing.
Some people also pay bribes to get something beyond the scope of what is fairly due to them, for
example paying bribe to get money released from bank even though the paperwork is not in
order.
Labour:
Lack of manufacturing capability in India has been attributed to red tapism and corruption, but
the low productivity of labour is also a big factor. In the early days of off shoring, firms from the
US and Western Europe preferred to set up manufacturing facilities in Thailand, Mexico, and
China, rather than in India. Though these countries too had an equally bad record of red tapism
and corruption, the labour in these countries was found to be more productive.
In spite of our huge population and high economic growth, it was only in 2006 that the economy
of India overtook that of Mexico in terms of GDP.
Since India is a secular country, religious beliefs of every religion are respected. So, it has
holidays on occasions such as Christmas, Good Friday, Holi, Diwali, Muharram, Id-ul-Zuha,
Guru Nanaks Birthday, Buddha Jayanti, and Mahavir Jayanti. There are also holidays on
occasions of national importance.
The Indian labour is cheap because of a comparatively low wage structure. But, the productivity
of the cheap labour is not always satisfactory. Employers often need to keep a regular check on
their employees.
Regional Sentiments:

6|Page
Many businesses have failed because they failed to take into account the sentiments of the local
population. Many successful businesses have managed to identify and respond to local
sentiments. Many outlets of international fast food chains such as Pizza Hut and McDonalds do
not serve beef or pork as a sign of respect for local mores. On the other hand, scores of
businesses suffer because of anti-social elements trying to score political points by going on a
rampage.
The local community expects to gain from every business being set up in its vicinity. This is
especially true when businesses come up in economically backward areas with very little
industrialization. The local community expects employment in the firm and does not react
favourably to employment of migrant workers.
Sometimes, entrepreneurs make goodwill gestures such as donating money to the local puja
committee, buying a computer for the school, or something similar. Overdoing this can backfire
as it can raise the expectation of the local community.
Grey Market and Counterfeit Goods:
The grey market refers to the flow of goods through a distribution channel not authorized or
intended by the manufacturer. Usually, this happens when the price of a product in the domestic
market is much higher than in other nearby markets.
Another problem is that of counterfeit goods. Even though, strictly speaking counterfeit goods
are not part of the grey market, increasingly people are clubbing the two together and including
counterfeit goods in the definition of grey products.
A new enterprise desirous of building a brand or an image of a manufacturer of high-quality
goods needs to think about a strategy to tackle the problems posed by the grey market.

Social Capital:
It is also loosely defined as Pehchaan in India or Guanxi in China. Social capital has been
defined as the aggregate of the actual or potential resources that are linked to relationships of
mutual acquaintance and recognition. It can also be referred to as connections or relationships.
Unlike other forms of capital, social capital is not depleted by its use; rather, it is depleted by its
non-use.
Ports (1998) has identified the following negative consequences of misuse of social capital:
i. Exclusion of meritorious outsiders
ii. Excessive claims on group members

7|Page
iii. Restrictions on individual freedom
iv. Norms aimed at downward levelling
Measuring social capital can prove to be tricky, but it depends on how many people you know,
how powerful are those people, and what they are willing to do for you. There are a number of
cases of entrepreneurs who have benefited by knowing the right people and using it to their
advantage.

CHAPTER 4

WHY ONE SHOULD INVEST IN INDIA?

The Indian economy has witnessed a paradigm shift since the last decade and is on a robust
growth trajectory. Today, the Indian economy boasts a stable annual growth rate, booming capital
markets, and rising foreign exchange reserves.
According to the Asian Development Bank's (ADB) report titled Asia Capital Markets
Monitor, the equity market in India, with a market capitalization of approximately US$ 600
billion, has emerged as the third-largest equity market, behind China and Hong Kong, in the
emerging Asian region. Here are some reasons why India is a seriously compelling story for
investors:
1. Size of India
India's GDP is currently US$1.3 trillion, making it the 8th largest economy in the world.
However, in PPP terms, which recognises India's low cost base, the GDP notionally rises to three
times this amount (US$3.8 trillion) which places it on a similar size to Japan and, by 2013, it will
become the third largest economy in the world (after the USA and China) in PPP terms.
However, despite representing 7.5% of Global GDP (on a PPP basis) in 2010, India attracts less
than 0.5% of investment inflows. An anomaly which is unlikely to continue for much longer!
2. Economic growth
India's economy is currently growing by 8.75% per annum (in 2010) and this GDP growth rate is
expected to increase to 9% - 10% per annum for each of the next 10 years. India's GDP will
grow five times in the next 20 years, and GDP per capita will almost quadruple.
3. Diversity
The Indian economy offers investors exposure to a wide range of opportunities from consumer
goods and pharmaceuticals to infrastructure, energy and agriculture. With its strong services
sector (comprising 50% of India's economy), particularly in knowledge-based services (IT,

8|Page
software and business services) India has proved that industrialisation and the export of
commodities and resources is not the only path to rapid economic development.
4. Demographics
India is one of the youngest countries in the world, with an average age of 25 and likely to get
younger. India's working-age population will increase by 240 million over the next 20 years.
With a population of 1.2 billion, a strong work ethic, high levels of education, democracy,
English language skills and an entrepreneurial culture, India is poised to dominate the global
economy in the next 20 years.
5. High Savings
With a savings rate of 37% of GDP, India's domestic savings fuels most of its investment
requirements, and only 20% of India's total public debt is sourced from foreign borrowing. With
significant investment to be made in upgrading India's poor infrastructure in the next 10 years
(estimated to be US$1.7 trillion) India's Government is taking various steps to further encourage
private and foreign investments.
6. Domestic economy
India's domestic consumption, generally led by the private sector, has played a significant role in
India's growth and is expected to remain firm as more people enter the workforce and the
emerging middle classes. India's wealthiest consumers (those earning US$1m or more in PPP
terms) will increase by 40 million in the next 10 years! Every sector within India's consumer
market is booming, making India far less vulnerable to external shocks and pressures than other
emerging markets.
7. A robust financial sector
India has a robust, diversified and well regulated financial system which has allowed it to
weather the global financial crisis without any major difficulties and present an image of quality,
resilience and transparency. India's banking sector is strong, with top quality balance sheets, high
levels of competition (there are around 80 banks in India) and strong corporate governance.
8. Quality of Investment Markets
The Bombay Stock Exchange is the second oldest in the world (165 years) and offers investors a
low cost, highly efficient, modern and well governed environment in which to prosper from
India's extraordinary economic growth. The Indian stock market has generated investment
returns of over 15% per annum for the last 10 years and experts expect this rate to increase in the

9|Page
next decade. More significantly perhaps, Indian investors have doubled their money over the last
3 years at a time when many have lost money in almost every other market.
Apart from the above, there are several other good reasons that make India as favoured
destination across and globe. Foreign exchange controls have been relaxed. Full repatriation of
profits is allowed. Trade policy is characterized by rationalized tariff levels and a drastic
reduction in quantitative restrictions. There has been drastic reduction in tariffs from the peak
time of 350% to less than 40% further decreases are planned. All other industries are exempt
from industrial licensing, subject to certain restrictions in metropolitan areas. India welcomes
foreign investment in virtually all sectors except defence, railway transport and atomic energy.
No government approval is required for FDI except for the small negative list notified by the
government.

CHAPTER 5

FOREIGN DIRECT INVESTMENT IN INDIA

The historical background of FDI in India can be traced back with the establishment of East
India Company of Britain. British capital came to India during the colonial era of Britain in
India. After Second World War, Japanese companies entered Indian market and enhanced their
trade with India, yet U.K. remained the most dominant investor in India. Further, after
Independence issues relating to foreign capital, operations of MNCs, gained attention of the
policy makers. Keeping in mind the national interests the policy makers designed the FDI policy
which aims FDI as a medium for acquiring advanced technology and to mobilize foreign
exchange resources. With time and as per economic and political regimes there have been
changes in the FDI policy too. The industrial policy of 1965, allowed MNCs to venture through
technical collaboration in India. Therefore, the government adopted a liberal attitude by allowing
more frequent equity.
In the critical face of Indian economy the government of India with the help of World Bank and
IMF introduced the macro-economic stabilization and structural adjustment program. As a result
of these reforms India open its door to FDI inflows and adopted a more liberal foreign policy in
order to restore the confidence of foreign investors. Further, under the new foreign investment
policy Government of India constituted FIPB (Foreign Investment Promotion Board) whose
main function was to invite and facilitate foreign investment. Since all countries are competing
with each other for FDI, investors have the option of picking and choosing the country where
they want to set up industries. More open economies with less government interference and good
infrastructure are attractive to foreign investors. But more than anything, they prefer a
disciplined and skilled labour force. That is a weak area in India and has to be addressed through
rapid skill development.

10 | P a g e
As per the data, the sectors which attracted higher inflows were services, telecommunication,
construction activities and computer software and hardware. Mauritius, Singapore, the US and
the UK were among the leading sources of FDI to the country. In 2013, the government relaxed
FDI norms in several sectors, including telecom, defense, PSU oil refineries, and power
exchanges and stock exchanges, among others. In retail, UK-based Tesco submitted its
application to initially invest US$ 110 million to start a supermarket chain in collaboration with
Tata Group's Trent.

CHAPTER 6

EASE OF DOING BUSINESS REPORT BY WB

It may have become easier for

Indian businesses to start a
business, but their access to
credit and ease of paying taxes
has worsened, according to the
World Banks Doing Business
Report 2016. India now ranks
130 out of 189 countries in the
ease of doing business, moving
up four places from last years
adjusted ranking of 134.The
rankings for both the years are
part of a revised methodology
adopted by the bank. India
improved its position on three
countsstarting a business,
getting construction permits
and accessing electricityin
the latest edition of the Ease of
Doing Business Index, but saw
its performance worsen with
regard to two parameters
accessing credit and paying
taxes.
In the areas that Indias
performance has improved, the biggest improvement was under the head of ease of access to
electricity, where it moved up 29 spots to 70.
Here, though, the assessment in the study that focused on the challenges faced by a business
house in obtaining a permanent electricity connection for a newly constructed warehouse, was
limited to the city of Mumbai, which has the best electricity distribution utilities operting in the
country.

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Another cause of concern was that the getting credit ranking has slipped from 36 to 42,
implying that it has become much more difficult to get credit in India despite the governments
efforts at financial inclusion and pushing ease of credit delivery.
It also slipped one spot in the criteria of ease of paying taxes.
India moved up nine spots in the criteria of starting a business to 155 in 2016 from 164 last year
and its ranking for dealing with construction permits also moved up one spot to 183. In other
segments such as protecting minority investors, registering property, trading across borders,
enforcing contracts and resolving insolvency, Indias rankings remained the same as last year.
India is ranked 178 in the parameter of enforcing contracts and 136 on the parameter of resolving
insolvency.
In the past year, India eliminated the paid-in minimum capital requirement and streamlined the
process for starting a business. More reforms are ongoingin starting a business and other areas
measured by Doing Businessthough the full effects are yet to be felt, the World Bank has
said.

CHAPTER 7

RECENT INDIAN GOVERNMENT INITIATIVES

1. To improve Indias ranking in Ease of Doing Business Report

INC-29
INC-29 gives a fast track procedure for registering any company in India. To simplify and fast
track the procedure for company registration in India, the Ministry of Corporate Affairs (MCA)
has introduced Form INC-29 Integrated Incorporation Form. Form INC-29 Company
Registration has merged the process of getting Director Identification Number (DIN), Name
Approval and Incorporation application into one single process thereby significantly reducing
the time taken to start a company in India.
INC-29 will provide following services through a single e-form:
a. Allotment of DIN-Director Identification Number
b. Name of a company
c. Incorporation of a company
Easing of trading across border component of ease of doing business
India has been ranked 126th in Trading across Borders component of Ease of Doing Business,
out of 189 countries ranked by the World Bank in its 2015 Report. This year, there has been
reduction of number of documents to only three in number from around ten for imports and
exports of goods. After issue of the DGFTs Notification dated 12-3-2015, only three documents

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each would be mandatory documents for export and import. Mandatory documents required for
export of goods from India now include Bill of Lading/Airway Bill; Commercial Invoice cum
Packing List, and Shipping Bill or Bill of Export and mandatory documents required for import
of goods into India include Bill of Lading/Airway Bill; Commercial Invoice cum Packing List,
and Bill of Entry.
Construction Permits
On this count, India ranks 184th among 187 countries and the major problem lie with local
authorities who issue permits. To curb this, common application forms have been launched in
Delhi. MCD will get clearances from all departments, doing away with the running around
involved and cumbersome procedures involved.
Enforcing Contracts
India has been ranked 186th among 189 countries due to poor enforcement of contracts,
including those between phone users and telecom companies. Measures so far include the setting
up of Special commercial courts in Delhi and Bombay High Courts to speed up cases related to
enforcement of contracts.
Resolving insolvency
There are many pending litigations related to insolvency in National Company Law Tribunal due
to the cumbersome process involved. Only measure taken in this regard by the government is the
announcement of introduction of bankruptcy code in India by Finance Minister while giving the
Union Budget.
Corporate Tax
Total tax rate estimated at 61.7% in India, compared to 41.3% for OECD countries, India has
been placed 156th. In this regard, corporate tax will be reduced from 30% to 25% in a phased
manner.

2. To Boost FDI

Recent years have witnessed, number of stamps taken by government to boost FDI. The
SEZ Policy is the latest and most ambitious of export boosting efforts, but it goes much
further, in that it seeks to radically change the environment for exports and FDI, by
offering a hassle free business friendly environment and world class infrastructure over
an unprecedented large geographical area. It allows government to experiment with
radical economic reform on a localized basis, introducing reforms that are difficult to
implement at the national level, given the country's large size and social disparities. The
most notable feature of this policy is working along with state government and

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encouraging them to take the lead role in export promotion. UP is the first state in the
country to formulate and implement SEZ Act.

MAKE IN INDIA as an initiative to attract Foreign companies

Make in India is an initiative of the Government of India to encourage multi-national, as
Well as domestic, companies to manufacture their products in India and hence to give a
boost to Foreign Direct Investment. The major objective behind the initiative is to focus
on job creation and skill enhancement in 25 sectors of the economy. The initiative also
aims at high quality standards and minimizing the impact on the environment. The
initiative hopes to attract capital and technological investment in India.
Under the initiative, brochures on the 25 sectors and a web portal were released. Before
the initiative was launched, foreign equity caps in various sectors had been relaxed. The
application for licenses was made available online and the validity of licenses was
increased to three years. Various other norms and procedures were also relaxed.
In August 2014, the Cabinet of India allowed 49% foreign direct investment (FDI) in the
defense sector and 100% in railways infrastructure. The defense sector previously
allowed 26% FDI and FDI was not allowed in railways. This was in hope of bringing
down the military imports of India. Earlier, one Indian company would have held the
51% stake, this was changed so that multiple companies could hold the 51%. Between
September 2014 and November 2015, the government received 1.20 lakh crore (US$18
billion) worth of proposals from companies interested in manufacturing electronics in
India.24.8% of smartphones shipped in the country in the AprilJune quarter of 2015
were made in India, up from 19.9% the previous quarter.
In August 2015, Hindustan Aeronautics Limited (HAL) began talks with Russia's Irkut
Corp to transfer technology of 332 components of the Sukhoi Su-30MKI fighter aircraft
under the Make in India programme. These components, also called line replacement
units (LRUs) refer to both critical and non-critical components and fall into four major
heads such as Radio and Radar; Electrical & Electronics System; Mechanical System and
Instrument system. The Ministry of Defence is auctioning a 60000 crore (US$8.8
billion) contract to design and build a Fighting Infantry Combat Vehicle (FICV) in India.
The contract will be awarded in 2016.
Benefits of MAKE IN INDIA:This will help in creating job market for over 10 million people in India
Manufacturing done here would boost Indias GDP, trade and economic growth
Features of MAKE IN INDIA:Launch of Make in India campaign took place on 25th Sep 2014.
The sales pitch would be made available in capital cities in India and countries with time
zone similar to India.
Over 15000 crores would be spent to open the training centres

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Translation of prime ministers speech would be available in multiple languages German,
French, Japanese and Russian

CHAPTER 8

SUGGESTIONS TO INCREASE INVESTMENT IN INDIA

So far only Multi-National Companies (MNCs) with their vast resources, know-how and
the right connections have been the major beneficiaries of this phenomenal growth in
India. Small and Medium Enterprises (SMEs) and Entrepreneurs are just becoming aware
of the growth story of India. So, I think they should also be given proper attention in
order to increase investment in India.
A simple analysis, taking into account the increasing population, growing consumption
and the shrinking agricultural land, shows that there is a very lucrative market for US
companies with products or technologies in Food & Beverages, Home based equipment,
Healthcare, Education, Consultancy Services and Infrastructure
From my point of view, apart from this, the factors likely to lead to a lesser degree of
corruption are as follows:
a) There should be greater transparency in procedures to be seen across government
departments. A number of departments should initiated e-governance initiatives,
which can increase public interface with officials by enabling registration, filing,
payments, and registering complaints through the Internet.
b) The right to information (RTI) Act has significantly changed the situation by
giving greater access of government records to interested or affected members of
the general public. It should be recognized even more and awareness should be
developed.
c) The media should also play an active and visible role by conducting sting
operations to expose corruption at many levels. The public humiliation suffered
by officials caught in these operations will serve as a deterrent to corruption.
Also, I believe that welfare measures that restrict long hours of work, protect women
workers, and prohibit underage employees are desirable; but, misuse of these clauses to
halt legitimate business practices is harmful for the growth of industry.
Measures to stamp out counterfeit and grey goods could be:
1. Manufacturers should drastically reduce prices to narrow the gap in prices in local and
overseas markets.
2. Warranties may not be extended to products not purchased through the regular
channels. So, a Nokia service center will not honour a manufacturers warranty on a
Nokia product that has not been bought from a bona-fide dealer paying all taxes.
To develop tourism investment, the government should
1} Plan for regional development with the help of tourism where other industries are not
in their best.
2} Start window policy to boost the direct and as well as indirect investment in tourism.
3} Plan preservation of cultural, heritage and environment at tourist destinations to attract

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more tourists.
4} Develop infrastructure to meet the present and future needs of tourist.

CHAPTER 9

CONCLUSION

Globalization and Foreign Direct Investment form an integral part of all the developed as well as
developing economies. In fact, the growth of the underdeveloped economies is also dependent on
these key factors. These components equip any nation with new skills, new items and provide
smooth access to markets and technology. Today, every nation across the globe is looking for
foreign and overseas investors. Whether it's India or China, everyone wants foreign investments.
According to recent trends, India is only second to China in the league of favorite investment
destinations. In the report issued by Department of Industrial Policy and Promotion, the fund
inflow to India reached US$ 27.3 billion in the period 2008-09, considered from the month of
April 2008 to the month of March 2009. Last quarter of 2008-09 alone witnessed an inflow of
approx. US$ 6.2 billion.
Today, the Foreign Direct Investment (FDI) policy in India is widely reckoned to be among the
most liberal in the emerging economies and FDI up to 100% is allowed under the automatic
route in most sectors and activities.
In the reports issued by Reserve Bank of India for outward investment from India, a growth of
29.6% to US$17.4 billion has been seen in the period 2007-08. The figures do not include
individuals and banks. India is considered the 2nd highest foreign employer in the United
Kingdom after the United States.
The NDA government has announced its plans to resolve insolvency issues and enforcing
contracts through legislations such as the bankruptcy law and public contracts dispute resolution
bill areas where it is languishing in the overall Ease of Doing Business rankings. Now the
future will only forecast whether the measures taken by the Modi government is in accordance
with the increase in the number of investing nations in India or not.

BIBLIOGRAPHY AND WEB REFERENCES

BIBLIOGRAPHY:

Jorgenson, D. W., & Yun, K. (1996). Investment. Cambridge, MA: MIT Press.
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