QUESTION FOUR- FDI INDIA
Recognizing the importance of foreign direct investment (FDI) to a country’s economic growth and development, India, which had an inward oriented growth strategy for a long time, opened up its economy to foreign investors in 1991.
A. Critically evaluate two major measures the Indian government has undertaken to attract foreign investors to invest in the country.
B. AIDitionally, despite its government’s continued efforts to make the FDI policy more liberal and investor-friendly, India still faces several significant challenges that are viewed as impediments to FDI inflows. Identify and discuss two major challenges that might deter foreign investors and hamper India’s prospects of attracting FDI in the future.
C. Assuming you represent a U.S.- based multinational corporation contemplating investing in and doing business in India, do you see any possible challenges to such FDI arising under U.S. law?