Direct Investment In India Research Articles

Effectiveness of Tax Incentives in Promoting Foreign Direct Investment in India

Effectiveness of Tax Incentives in Promoting Foreign Direct Investment in India

General characteristics of investment law in India

The aim of the work is a comprehensive analysis of investment law in India. The methodological basis of the study are official websites of specialized institutions, laws, analytical reports, articles by other scientists, etc. According to the results of the conducted research, it was found that two main legislative acts regulate investment activities in India. The first piece of legislation is the Foreign Exchange Management Act, 1999, the main objective of which is to promote foreign trade and foreign exchange and to develop and maintain the foreign exchange market in India. According to Section 5 and 6 of the Law, operations with a current currency account are allowed only on the condition that they do not have any restrictions (criminal, state, etc.). Capital account transactions mean transactions during which changes in assets or liabilities occur (referring to liabilities of resident and non-resident persons in relation to assets). The second act – Consolidated Policy on Attracting FDI in India by the Department of Trade and Industry Promotion 2020 – includes clarification of all investment norms. The policy update is in line with the policy of need to attract FDI to India, as per the plans of the Department. In conclusion, it was found that the legal system of India is based on common law, which is based on English law. According to the Constitution of India, a quasi-federal structure has been approved, which provides for the division of legislative power between the central government and the individual states. Foreign direct investment in India is governed by two main pieces of legislation. The first is the Foreign Exchange Management Act of 1999, its main objective is to facilitate foreign trade and foreign exchange and to develop and maintain the Indian foreign exchange market. The second – Consolidated policy on attracting FDI to India. Attracting foreign direct investment in India is possible in two ways: automatic investment of FDI and obtaining permission for FDI.

Role of Foreign Direct Investment in India’s Agribusiness

Role of Foreign Direct Investment in India’s Agribusiness

Indian Entertainment Industry Analysis: Past, Present and Future

The entertainment industry is a component of the tertiary sector of the economy that includes the performing arts. When new technologies and concepts arise, the entire corporate world transforms. The industry is thriving financially and in terms of the talented artists and programmers it employs. Increased globalization and the subsequent elimination of market constraints resulted in astronomical growth. This research explores the origins, current conditions, hazards, potential solutions, future trends, and potential effects of foreign direct investment in India’s entertainment business. This research investigates the effects of globalization and its potential to provide new job possibilities. The data shown here has been gathered from secondary sources (the internet and published articles). The first form of entertainment was the transmission of cultural norms and beliefs from one generation to the next via the telling of stories. Since the arrival of the television triggered a seismic upheaval in the industry, distribution methods for entertainment have evolved gradually. While the epidemic has disproportionately affected certain areas of the industry’s workforce, others have been able to prosper because of the relative anonymity and safety of online venues. Television remains the most frequently consumed form of media, despite the advent of digital media and online gaming as more popular entertainment than film. As video streaming and other forms of online entertainment become popular, the OTT platform is anticipated to experience parabolic growth in the coming years. Due to the absence of references, the lack of emphasis on essential concerns, and the overall obsolescence of the accessible material, it was difficult to locate pertinent information. To support the nascent Indian entertainment industry and ensure the safety and stability of all its stakeholders, especially in challenging times like the ongoing pandemic, this paper highlights the significance of the government and regulatory bodies actively considering implementing incentive measures.

Determinants of Foreign Direct Investment in India and Retail Sector Liberalization: A GMM Estimation

Determinants of Foreign Direct Investment in India and Retail Sector Liberalization: A GMM Estimation

Regional Distribution of Foreign Direct Investment in India

The tremendous rise in Foreign Direct Investment (FDI) inflows following the economic reforms in 1991, has been one of the most prominent features shaping the behavior of the Indian economy in the past three decades. The present study is based on secondary data and the objective is to examine the trends in FDI inflows to India following the global financial crisis, for the period 2009-2010 to 2021-2022. Additionally, the distributional pattern of FDI among the regions and states of India is also analyzed, using the data for 30 states/territories. The results reveal that total FDI inflows have increased in substantial amounts over the period from US$ 37,745 million in 2009-2010 to US$ 84,835 million in 2021-2022. Maharashtra and Karnataka have surpassed all other states in FDI equity inflows over the period from October 2019 to September 2022. These two states have commanded 50 percent of the total FDI, whereas the regions in central, eastern, and northeast India have received less than 3 percent of the total FDI equity inflows. Thus, the regional disparities in the distribution of FDI are quite visible post-analysis. It is suggested that government should focus on making investor-friendly policies to tap the potential of regions neglected by foreign investors.

Foreign Direct Investment in India and Other Major Emerging Market Economies: A Panel Data Analysis

Foreign Direct Investment in India and Other Major Emerging Market Economies: A Panel Data Analysis

Cross Border Insolvency: A Pearl in the Ocean

International Insolvency can also be termed as Cross Border Insolvency, when the debtor having assets or liabilities in more than one jurisdiction. International insolvency sometimes termed as Cross-Border insolvency was in practice since early stages in England and it was governed by the common Law of England. The Solomon v. Rosswas the first case recorded in 1764, in this case English creditor brought action in England against the sum owing to the Dutch firm which was declared as bankrupt in Netherlands. The historical development of Cross-Border insolvency can be traced back since modern Private International Law’s birth, when state use to enter into agreements and sign treaties, to harmonize their relationship and to resolve their conflicts. The treaty of Montevideowas signed by five countries in 1889 to harmonize their fiscal policies, was the first to recognise Cross-border Insolvency. Due to the Advent of globalisation, The insolvency Law Committee was formed for drafting the bill of Insolvency and Bankruptcy bill and it Included 2 provisions for dealing with the Cross Border Insolvency issues and the increasing foreign direct investment in India, there is a strong need of increasing incorporation of company in various jurisdictions and there is an urgent need for Law on Cross Border Insolvency for solving the disputes across jurisdictions

SCENARIO OF FOREIGN DIRECT INVESTMENT IN INDIA DURING COVID-19

Foreign Direct Investment (FDI) is cited as one of the most strategic tools for a developing economy as it brings in market discipline by increasing competition. In addition, there is a growing demand for products and services that are available across the world. Due to India’s increasing working population with higher purchasing power there is an increasing demand for products and services that are best in class. The covid-19 pandemic has set the international financial system into a downturn which means the global economy has begun shrinking whereas India has no exemption. Nowadays India has emerged as one of the most preferred destination for FDI. The covid-19 pandemic has put international investor confidence in India to the test. The basic aim of the study is to examine the effect of Covid-19 in Foreign Direct Investment in India. The trends of FDI inflows have been monitored to compare pre and post Covid-19 period. The results reveal in 2020 has worst effect, while after that, due the revised FDI policy and India’s internal capability to attract international investors, increase in FDI inflows have been observed. FDI is considered as a positive factor of the economic expansion could play a key part in assisting the economy in the time of crisis. KEYWORDS: Foreign Direct Investment, Covid-19 pandemic

Factors Affecting Foreign Direct Investment in India: A Survey Based Study of Economic Experts

The study can help identify the key factors that impact foreign direct investment (FDI) inflows into India. Political stability and a favourable regulatory environment are the most significant determinants of FDI inflows into India. Experts highlighted the importance of a stable political environment that fosters investor confidence and predictability. The liberalization of FDI policy has increased the sectors eligible for FDI and raised the FDI limit in various sectors. Similarly, ease of doing business measures such as digitization of procedures and streamlining of regulatory processes have improved the investment climate in the country. Overall, the study provides important insights into the factors that impact FDI inflows into India and offers suggestions for policymakers to further improve the investment climate in the country. The findings suggest that political stability, a favorable regulatory environment, better infrastructure, and flexible labor laws are crucial for attracting FDI into the country. Policymakers should continue to focus on these areas to attract greater FDI inflows into India and foster sustained economic growth. Sample of 130 respondents that includes economic experts were surveyed to know the factors that affects Foreign Direct Investment in India and it is found that Political stability, Favourable regulatory environment and better infrastructure the factors that affects Foreign Direct Investment in India.

Foreign Direct Investment in India’s Retail Bazaar: Opportunities and Challenges

Foreign Direct Investment in India’s Retail Bazaar: Opportunities and Challenges

ASSOCIATION OF ELECTRICITY CONSUMPTION, ECONOMIC GROWTH AND FDI IN INDIA

India is one of the largest producer and consumer of electricity in the world owing to being one of the most populous country in the world signifying the demand for electricity is only set to grow further. World has witnessed an era of economic growth aided pertinently by electricity consumption and growing demand. With FDI indorsed downright to this vital utilities sector, it becomes imperative to cognize the relationship of Electricity Consumption, Economic Growth and FDI in India. In this study we investigate the causal direction of relationship among Foreign Direct Investment, Electricity Consumption and Economic Growth in India by using time-series data for the period 1986–2021 and employing econometric models. We find two uni-directional causalities running from Electricity Consumption to Economic Growth and Economic Growth to FDI and a bi-directional causality between Electricity Consumption and FDI. The results of the study provide a novel perspective for policy makers while formulating policies related to the power sector and foreign direct investments in India. The focus of Policy makers should be on enabling electricity service providers to offer best services to commercial and non-commercial participants as it aids in Economic growth of the country. For enhanced economic growth a country like India must have good and world-class infrastructure, efficient and effective regulatory mechanism equitable for all stakeholders, an improved living standard for people of all economic strata and a stable, healthy business friendly environment coupled with policy stability through stable government.

Foreign Direct Investment in India: A Trends Analysis

Foreign capital plays an important role in the development of developing countries whose domestic capital is not sufficient to fulfill their domestic requirements. Foreign Direct Investment (FDI) is an important part of the foreign capital which fills this gap in the domestic savings and thus plays a crucial role in the developmental process. This paper tries to analyze the trends of foreign Direct Inflows in India during the period 2000-01 to 2020-21. Our analysis shows a sharp rise in the FDI inflows in India during the chosen study period which is the period after a decade of economic reforms in India. However, the study shows some fluctuations in the FDI inflows which have been analyzed in the paper.

Impacts of Foreign Direct Investment in India

Impacts of Foreign Direct Investment in India

Economic Factors and Foreign Direct Investment in India: A Correlation Study

Foreign Direct Investment (FDI) plays a pivotal role in the process of economic development particularly in the capital scarce country, where the domestic base of created assets like technology, skills and entrepreneurship are quite limited. It provides financial resources for investment in a host country and thereby augments domestic saving efforts. It also plays an important role in accelerating the pace of economic growth. FDI provides the much-needed foreign exchange to help the bridge the balance of payment or trade deficit. FDI brings complementary assets such as technology, management and organizational competencies and there are spillover effects of these assets on the rest of the economy. FDI is treated as a main engine of economic growth and technological development which provides ample opportunities in accelerating economic development. FDI contributes to exports directly and an enhanced export possibility contributes to the growth of the host economies by relaxing demand side constraints on economic growth. The present study adds to the existing literature on determinants of FDI by examining the degree of correlation between FDI inflow in India and several economic factors like exchange rate, GDP, openness of trade etc.

A STUDY ON CONSUMERS ATTITUDE TOWARDS THE PREFERENCE OF WHITE GOODS IN ONLINE SHOPPING IN COIMBATORE DISTRICT

In India in recent times, it is observed that e-commerce has captured a huge market share and it has changed the business world. The direct investment in India increases globally and the country is considered has huge market for large scale marketers. The durable goods have emerged as one of the developing industries in India. It is to be noted that among the durable goods the white goods capture market share. The present study concentrates on consumers attitude on preference of white goods in Online shopping in Coimbatore District. Based on the survey method, the data is been collected and statistical tools is used to analyse the collected data. The study concludes that due to pandemic situation the online shopping has been increased. The consumers are able to save money on purchasing white goods through online shopping. The study also states that consumers have wide area on comparing the products and the consumers can act rationally on purchasing the white goods through online.

CONSIDERING CORRUPTION, INFLATION, INFRASTRUCTURE AND TRADE TO EXPLAIN FOREIGN DIRECT INVESTMENT INFLOWS IN INDIA POST LIBERALIZATION

This paper considers corruption, inflation, infrastructure and trade to fit models to explain the inflow of foreign direct investment in India post liberalization. For this purpose, data from 1995 to 2019 is used considering the consistent availability of data for all the variables during this period. Timeseries regression is performed on standardized independent variables to control for multicollinearity. Two models are estimatedone having a doublelog form and one without converting the explanatory variables into logarithms.It is found that corruption is signifi cant at 5% significance level in both the models. Trade is significant at 10% significance level in the doublelog model while it is insignificant in the other model. Also, infrastructural variables i.e. energy and transportation are both insignificant in doublelog model while energy is significant and transport is insignificant in the other model. Consumer price index is used in place of inflation as it does not make sense to convert inflation rate into logarithm. Itis found to be insignificant in both the models.

An Analytical Study on Relationship Between Goods and Service Tax and Foreign Direct Investment in India

Since the implantation of the LPG policy during 1991 in India many companies have seen India as the hub of investment. To accelerate these foreign investments into the economy the government of India has taken another major step to attract the foreign investments on 1st July 2017 called the Goods and Service Tax implementation. GST has increased the ease of doing business and eliminates the cascading effect of tax on goods and services. These are a few of the major reasons for attracting FDI in India. The paper throws light on importance of GST and its relationship with FDI in India.

Linkage between Health Expenditure and Foreign Direct Investment in India

Linkage between Health Expenditure and Foreign Direct Investment in India

Bilateral Investment Treaty and Foreign Direct Investment in India

India has one of the largest Bilateral Investment Treaty (BIT) networks with other counties around the world. The BITs is to promote foreign investment by increasing investor confidence, empowering individual private parties to take international arbitral proceedings against the threat of appropriation by the government of the host country. This paper analyses the effect of BITs on FDI inflows in India using panel data for 76 countries for the time period 2000-2016 applying a dynamic panel generalised method of moments instrumental variable estimation method. The differenced GMM and system GMM estimates show a significant negative effect of bilateral investment treaties on the FDI inflows in India. While the lagged FDI has a significant positive effect, the financial openness of the source nations is reducing FDI inflows to India. The POLCON index shows that the countries with lesser political constraints have positive FDI outflow towards India. As opposed to domestic variables, the Chinn-Ito and POLCON indices have a greater share of change in FDI inflows to India. It seems that the BITs is not efficient enough to create investor confidence to invest in India.