Foreign Investment Essay

Summery India has free trade after year in 1991 that has resulted in attracting greater investment in country especially from foreign investors. Reducing tariff wall, give opportunity to invest with some products and supporting foreign investors to use asset in the local for set up their business. These are driver of gross domestic product and income per capita become high significantly. Therefore it can be said that India’s trade system provides advantage with investment of abroad. Resources also available with investment especially coal. It is similar to human resource in India have most efficiency and low wages. All of these catch the attention of many investors to come to invest in India. In contrast, India is a socialist and has both

In Economic Outlook (2009)of PM’s Economic Advirsory Concil report the major increasing in manufacturing growth rate by 8.2% (2010) from (2009) and turn down in cultivation (2%) compared with last year (FKCCI business research , 2009).

Foreign Investment: The value of investor from overseas has significantly raised between 2006 to 2007(US$ 22.8 billion) and continuously increasing after that time(Bank of India,2009). The growing of values’ foreign investment relate to reducing of tariffs and also less control with foreign ownership to invest industries within India.

External Debt: India has slightly decreasing external of gross domestic product (GDP)debt’s percentage in 2010 by declined to 16.0 from 18.0 (2009).In the same time as the value of dept was small drop by US $222.7 (US $229.9 ,2009) on end of June (Bank of India, 2009).

Caste system, for example, is a direct result of Hinduism. This belief is still held with India’s people and has forwarded influence with operation procedure of the business today. Indian people also believe in destiny of a feature and beliefs about karma, which believed everything that happens to be reasonable. These attitudes also influence the timing issues. Therefore, many Indian businesses will not rapidity in the negotiations agreed in the business. Furthermore, the scale of four dimensions of national culture in 2001 (Dowling,Liesch,Gray and Hill,2009) found that the India has high collective due to people in India are together as a group; require of privacy and less of open the personal space. It has also high scale of masculinity that have unfair between men and women. According to the study of World Economic Forum in (2009 )measuring of the gap of gender, India country has high ranked (127 from 134), Education, For example the amount of literate in women(55%) further less than with men(77%) and small of proportion women workers (42) when compared with every 100 male