Foreign Direct Investment in India: Issues and Problems
Nirupam Bajpai; Jeffrey D. Sachs
- Foreign Direct Investment in India: Issues and Problems
Sachs, Jeffrey D.
- Working papers
- Earth Institute
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- Part Number:
- Harvard Institute for International Development
- Publisher Location:
- Cambridge, Mass.
- In this paper, we have attempted to identify the issues and problems associated with Indiaâ€™s current foreign direct investment regime, and more importantly the other associated factors responsible for Indiaâ€™s unattractiveness as an investment location. Despite India offering a large domestic market, rule of law, low labor costs, and a well working democracy, her performance in attracting FDI flows has been far from satisfactory. A restrictive FDI regime, high import tariffs, exit barriers for firms, stringent labor laws, poor quality infrastructure, centralized decision-making processes, and a very limited scale of export processing zones make India an unattractive investment location.
South Asian studies
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