International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
• Every state government takes a major initiative like Vibrant Gujarat to
bring all the investors around the world and show cause their
advantages and encourage them to invest.
The advantages of India as an investment destination rest on a number of
factors, which include a large and growing market; world-class scientific,
technical and managerial manpower; cheap labour; an abundance of
natural resources; a large English speaking population; independent
judiciary, etc. This has now been recognized by a number of global
investors who have either already established a base in India or are in the
process of doing so. Ongoing initiatives such as further simplification of
legislation, de-licensing, setting up of regulatory authorities such as
Central/State Electricity Regulatory Commissions, etc. is expected to
provide the necessary impetus to increase FDI inflows in the future.
Inflows of FDI would depend on domestic economic conditions and
the FDI policy, world economic trends, and strategies of global investors.
The Government, on its part is fully committed to creating strong
economic fundamentals and an increasingly proactive FDI policy regime.
The positive efforts of the Government to improve the investment
climate, including sustained improvement of infrastructure, have led to
renewed optimism about India as an emerging investment destination.
Criteria considered by investors prior to selecting a destination.
1. Political stability and a strong policy to protect investors.
2. Safety and security for life, money and output.
3. Investment protection through legal provisions.
4. Good governance as compared to other countries.
5. Proactive government policies and implementing authorities,
bureaucrats.
6. Continuous infrastructural development..
7. Banking system with updated technology.
8. High productivity of the labour force and unhindered working
conditions.
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