Do you think indian's FDI policy has been encouraged for foreign investors? give your arguments and discuss the policy?
Answers
India has encouraged Foreign Direct Investment (FDI) through various economic reforms and policy amendments, since 2014. FDI limit which was capped at 26% was moved up to 49%, for insurance sector alone. Several other sectors were also opened up, to encourage and aid the government’s ‘Make in India’ policy.
These moves by the government have made India the most preferred country for Foreign Direct Investment.
Yes, India’s FDI policy is quite encouraging for foreign investors. Industrial management studies have publicized that as foreign investors’ confidence in the Indian government will increase, their levels of investment in India will also go up.
Recently, government has improved the upper limit of FDI from 26% to 49% in different areas of investment like foreign portfolio investment, foreign venture capital investment, foreign institutional investment, Non-resident investment, and qualified foreign investment, etc.