- Economic factors: India has a fast-growing economy, skilled workforce, and large consumer base.
- Investment incentives: Foreign investors receive tax incentives, subsidized rates, and preferential tariffs.
- Labor costs: India has relatively cheaper labor costs and wages.
- Market access: India offers access to a new market with willing buyers.
- Manufacturing hubs: Key manufacturing sites and suppliers are easily accessible from Indian manufacturing hubs.
- Policy regime: India has a transparent open policy regime.
- Reform efforts: India has conducted remarkable reform efforts.
However, India can be less attractive for foreign investment due to issues such as:
- Delays in enforcing contracts
- Cumbersome procedures
- Geopolitical risks
In 2020-21, India's FDI inflow was at its highest ever at USD 81.97 billion, despite the COVID pandemic.
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