Foreign Direct Investment

Harvard Institute for
world-wide Development
HARVARD UNIVERSITY
Development Discussion topics
Foreign site enthronisation in India:
Issues and Problems
Nirupam Bajpai and Jeffrey D. Sachs
Development Discussion Paper no 759
March 2000
© Copyright 2000 Nirupam Bajpai, Jeffrey D. Sachs,
and President and Fellows of Harvard College
Foreign Direct Investment in India
Issues and Problems
Nirupam Bajpai
Jeffrey D. Sachs
Abstract
In this paper, we have attempted to identify the issues and problems associated with
Indias current foreign direct investment regime, and more importantly the other associated
factors responsible for Indias unattractiveness as an investment location. Despite
India fling a large domestic market, rule of law, low constancy costs, and a well working
democracy, her performance in attracting FDI flows has been far from satisfactory. A
confining FDI regime, high import tariffs, exit barriers for firms, stringent labor laws,
despicable quality infrastructure, centralized decision- qualification processes, and a very limited
scale of exporting processing zones make India an unattractive investment location.




Keywords: economic polity reform, FDI, foreign direct investment, and India
JEL codes: F21, F23
Nirupam Bajpai is an Associate at the Harvard Institute for world(prenominal) Development
and Director of the India Program at HIID.
Jeffrey D. Sachs is the Director of the Center for International Development and Galen
L. Stone Professor of International Trade at the Department of Economics at Harvard
University. He is also a Faculty Fellow at HIID.
HIID Development Discussion Paper No. 759
1
Introduction
Indias economic policy reforms have vie a critical role in the performance of the
Indian economy since 1991. Among other things, the reforms have involved opening the
economy, making it more competitive, getting the government out of the huge drop-off of
regulation, empowering the states to take more responsibility for economic...If you want to get a full essay, order it on our website: Ordercustompaper.com



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