Foreign direct investment

Developing countries like india needs foreign investment

for economic growth, rapid industrialization and
infrastructure development. Foreign investment
supplements domestic investments so government has to
give certain assurances and incentives for large scale
inflow of foreign capital

Forms of foreign investment in india

Foreign direct investment
Foreign collaborations and joint ventures
External commercial borrowings
Deposits from NRIs
Investment through MNCs
As the FDI supplements domestic growth and also a very
important role in development of a nation so the policy
related to FDI should be framed properly
According to us FDI policy should be framed by
considering these following points
Protect investors funds
Investors funds should be protected as there are
investing their valuable funds in our nation these can be
done by introducing strict laws against scams and unfair
trade practices

Unnecessary formalities
Unnecessary formalities should removed in order increase
FDI unnecessary formalities such as permission from
politician should be removed
Development of cities and towns
Government should develop cities and town for FDI as
foreign investors will not invest their money in villages or
rural areas there very few cities that are eligible for FDI
Reduction in investment amount
There should reduction in minimum investment amount
for e.g in case of multi brand investment minimum
investment of 100 million rupees is required . as the
minimum investment amount is quite high not every
company will be able to invest
Simplification of taxation policy
In india taxation policy is quite complicated and not
stable so government should took possible measures to
simplify it