-
Essay / Online country profile #2 - 641
In today's integrated, almost global economy, foreign direct investment plays a major role. Many countries rely on FDI to keep their economies strong. All economies in the world, although some may be similar, vary. Differences may be due to population culture, resources, geographic location, and many other possible reasons. It is these differences that distinguish each economy from others. These differences also attract or repel foreign investors. India has its own economy and although it has had its ups and downs, it seems to be a rising star. India is a democratic country with a robust economy and a skilled workforce. India's large middle-class population provides an untapped market for a variety of products. This, coupled with the availability of qualified “English-speaking” personnel and investment-friendly governments, has helped the country transform into one of the most attractive destinations for multinational companies. The Financial Express conducted a study in 2013 titled “Most MNCs keen to invest in India: Study” and observed: “…the survey indicates that in comparison with other emerging economies in Asia (China, Malaysia, Thailand and the Philippines), India is expected to be tied in terms of FDI attractiveness, although the current performance of multinationals in India compares favorably with their operations in Southeast Asian countries. . Compared to China, almost 50% of respondents believe that India is on par with or better than China in terms of MNC performance. As reported by AllBankingSolutions.com, in December 2011, the Indian government decided to remove the 51% cap on foreign investments for individuals, allowing foreign companies to invest 100%. This raises many opportunities for FDI f...... middle of paper ...... esters. A company that focuses on its beef burgers, steaks or barbecues would probably not succeed in the Indian market. They would either avoid all of this or change their menu options. India is clearly booming. It will exceed the market size of major countries in no time. With changes in government policies, population growth and increasing literacy; India will soon be one of the most attractive places for FDI. Works Cited The Indian Express Itd. The Financial Express. “Most multinationals want to invest in India: study.” 2005. Internet. Np November 15, 2013. Rajesh Goyal. All banking solutions. “FDI in India”. Nd Web. November 15, 2013. Index of Economic Freedom 2013. “India.” 2013. Internet. The Heritage Foundation. November 16, 2013. Indiaonlinepages.com. "Population of India." 2013. Internet. Indiaonlinepages.com. November 16 2013.