The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Tackling the FDI headache

India

Coca-Cola: its expansion in India has been hampered
by divestment rules

India's problems attracting foreign direct investment, particularly in contrast to China, is often a sore point with Indian officials. A steering group, headed by NK Singh, a former revenue secretary, has been advising on how more might be attracted.

Singh's group produced a report in September that the government is set to act on in the run-up to February's budget. It says that if India is to raise the annual GDP growth rate to 8%, it must attract $8 billion in FDI each year, more than twice 2001's $3.9 billion. India's share of the total $225 billion FDI invested in developing countries in 2001 was just 1.7%, and FDI constitutes under 1% of its GDP, compared with just under 4% in China and Malaysia.

India, says the steering group, has one of the most liberal and transparent FDI regimes among developing countries, and often it is in fact domestic policy - applying to all companies, foreign or Indian - that foreign investors find irksome. Curiously then, the group suggests that limits on foreign ownership must be raised and that India should have a foreign investment promotion law comparable to those in Korea and Malaysia.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree