Question

Explore and select one country with a developing economy. Research and discuss factors that this country must consider on increase Foreign Domestic Investments. Choose the "Record/Upload Video" tool to deliver a 3-minute audio response. Include with your recording a list of references. Post the response to the main question no later than Wednesday of each week. Listen to the answers of two peers and post a substantive comment to each that aligns with the concepts discussed. Be sure that you enter the forum at least twice and that you end the week with three high-quality responses. Please view the Weekly Activity Rubric for grading criteria

Answer 1

Ans) INDIA

Intro- The economy of India is developing and mixed economy. And has emerged as the fastest growing economy in the world.

FDI IN INDIA

FDI in India increased by 6% to $42 billion in 2018 according to UNCTAD ( UN Conference on Trade and Development).

FDI in India is permitted by three routes , namely, ÷

1. Automatic route
2. Government route
3. Government + Automatic route

Main development in FDI was seen mainly in three sectors ÷ Manufacturing, communication and financial services.

STEPS NEEDED FOR INCREASING FDI÷

• According to IMF, although some progress has been made in the field of FDI in India, but easing business environment and relaxing trade norms can help India attract more FDI.
• IMF has suggested to gradually liberalise portfolio investment.
• Also India needs to encourage FDI in petrochemical rather than only FTAs.
• Next is corporation tax in India needs to be relaxed. Little ease was brought in it when former finance minister Arun Jaitley announced reduction in corporation tax from 30% to 25% in 2018.
• India needs to focus more on its SEZs. It has 373 SEZs out of which 142 were still under development and 61 more are planned.
• Lastly the infrastructure and Ease of doing business should be smoothened to attrat more FDIs.