India is at an all time high as far as growth is concerned, with growth being targeted at about 7-8% for the fiscal year. We need to see the environment, and if it is conducive for attracting FDI in India. India has reduced its tariff barrier and has made the International Property Rights stringent, while many MNC are of the opinion that the IPR must be relaxed a little to increase the inflow of traffic. But according to my earlier articles, we must bear in mind that Intellectual Property Rights not only safeguards the indigenous products but also of those companies who are willing to set up their R&D facilities here. India has been ranked one of the most sought after place for investments. The returns to the Investments seem to be high. With inflation under control at 5.5%, it is only apparent that there has been an increase in the purchasing power parity and hence demands. In order to meet the ever-increasing demand, with increase in the lifestyle, it is a necessity that India attract all the foreign investment that it can. Already India is practicing a FDI friendly environment.
With the introduction of VAT, there seems to be a positive attitude on the investment as far as the domestic side is concerned, this optimism is spreading through to Foreign Direct Investments too. With the relaxation of trade barriers, more foreign goods are finding its way into India. Given the conducive environment, India is all set to welcome the Foreign Investors.
But what is lacking? One major setback seems to be Infrastructure facility. The government policies must be to improve the various amenities. Any foreign Investment depends on strong Infrastructure facilities. This is a Government call, and only a strong and a long-term policy can rectify the situation. But we need to look at the improvement made at this front too, take for example Hyderabad. Chennai with the various improvements in roadways and other infrastructure facilities in the last few years is setting an example too. So as Mr. P. Chidambaram has said, India is all set to walk on the path of developed economies in less than fourteen years.