Why India Is Loosing FDI Investments?
Devesh Kapur suggests that a simple way to scrutinize the depth of the alarming crisis can be measured by two easy questions. The first question that pops up is why FDI investment in labour-intensive sectors while thinking to shift from China chooses Cambodia instead of India, while Cambodia is a country with severe weaknesses from governance to human capital.
And the second question comprises that why Indian prefer to Invest more in non-productive assets like real estate and gold rather than productive enterprises? These two questions have given flames to think seriously about the level of prospects in India.
While looking for answers, Devesh Kapur writes that the root cause of the looming conditions of the Indian economy can be the basic method followed by the policymakers. They tried to portray India as the ideal country for FDI, rather than focusing on what it would take for small and medium enterprises to thrive in India. If concrete opportunities of how SME businesses can thrive in the Indian economy were presented to the global investors, without human intervention it would create the permissive conditions that would be conducive to attracting FDI.
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