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

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International Business- Dr. R. Chandran
9. Clear and simple tax procedures without any ambiguity.
10. Availability of raw material, components and consumables.
11. Hospitable society, especially secular approach towards investors.
12. Demand for the products the investor manufacturers.
13. Ample potential opportunities for products in the neighboring
countries.
Even though the developed and developing countries are extending
schemes of tax holidays and many other incentives, very few countries
are capable of attracting FDIs. Still, China is an attractive destination
because it ranks on a higher scale as compared to others on all the
parameters mentioned above. India, could not attract an expected
investment in the last and early part of current decade though the scenario
is changing gradually now.
The reasons are:
1. Poor infrastructure, which does not match international standards.
2. Political instability, but now it is not a major constraint.
3. High levels of corruption, which are deep-rooted at all levels.
4. Bureaucratic red tape, which the investor does not have to face in
other destinations in the world.
5. Interpretation of policies and their implementation are quite complex.
6. Heterogeneous society with different states, cultures and languages.
7. Inordinate delay in projects.
8. Draconian labour legislation.
9. Lack of transparency in regulatory bodies.
10. High cost of production due to expensive power and other inputs and
transportation.
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