New FDI targets look daunting
However, there are few points to be kept in mind. For starters, the sole purpose for an MNC to invest in any country is to earn profit. Thus the country has to provide adequate business opportunities and also ensure that the business is cost effective. It has to provide access to solutions to approval and regulatory procedure related queries and also make information related to easily accessible. FDI readiness also hinges heavily on infrastructure constraints. Besides, the personal perception (FDI of India as an FDI destination) in the minds of top management of MNCs is not very positive. Moreover, there is sheer lack of cooperation from state governments with respect to land acquisition or labour laws.
The government has doubled the basic tax-free investment to Rs.12 billion. It has also uniquely created an Invest-India company to help global SMEs by providing a government equity stake if needed. If the government is seriously considering making India – as they say – “the factory of the world for new technology,” for now, India doesn’t even have the National Manufacturing Policy in place. Anand Sharma seems to be very clear that “when wealth is created, it is to be redistributed.” For now, the foremost challenge is that of wealth creation.
The government has doubled the basic tax-free investment to Rs.12 billion. It has also uniquely created an Invest-India company to help global SMEs by providing a government equity stake if needed. If the government is seriously considering making India – as they say – “the factory of the world for new technology,” for now, India doesn’t even have the National Manufacturing Policy in place. Anand Sharma seems to be very clear that “when wealth is created, it is to be redistributed.” For now, the foremost challenge is that of wealth creation.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
