Question 2GS2GS2
India's FDI sector is seeing a significant downward trend. What factors are causing apprehensions among the foreign investors to invest in India? Suggest some corrective measures that must be taken by the Government to reverse the falling trend.
Main Body
In 2022-23, nearly 84 BM of FDI came in, which registered a fall of nearly 43% as compared to the previous year. Factors causing apprehensions: 1) Skill mismatchonly 57% of Indians have formal job training. 2) Fragmented supply chainsadds 20-80% extra cost from manufacturer to consumer. 3) Inconsistent policy frameworksease of doing business rank (131 World Bank). 4) Vulnerability of Indian stock marketsfall by 6.5% due to election security. 5) High taxation drivesangel tax etc. Corrective measures: 1) Expert oriented growthlabour intensive sectors like textiles, footwear etc. 2) Consistent policy reforms to attract FDIPLI make in India etc. 3) Regularised, simplified and single window clearance systems for FDI approval. 4) Currency stabilization by RBI's forex exchange management. 5) Taxation rationalisation to attract FDI. 6) Infrastructure creationBharat mala, Padwamala etc. to reduce logistics cost from 10-14%.
151 words1 paragraphs
Conclusion
Thus, schemes like National Infra Pipeline, innovated automatic route FDI are steps in right direction.
15 words
Topper
RITIKA
Subject & Paper
GS2GS2
Topic
Effect of Policies of Developed/Developing Countries and Indian Diaspora
India as an Alternative to China
FDI trends and foreign investor apprehensions
Writing Stats
166
Total words
1
Paragraphs
analytical
Tone