Topic > Online Country Brief #2 - 641

In today's integrated, almost global economy, foreign direct investment plays an important role. Many countries rely on foreign direct investment to keep their economies strong. All economies in the world, although some may be similar, vary. The differences may be due to the culture of its people, resources, geographical location and many other possible reasons. The differences are what distinguishes each individual economy from the other. The differences also attract or repel foreign investors. India has its own economy and although it has had ups and downs, it seems to be a rising star. India is a democratic country with a robust economy and skilled workforce. India's large middle class population base is an untapped market for a variety of products. This, combined with the availability of qualified "English-speaking" staff and investment-friendly governments, have helped transform the country into one of the most attractive destinations for multinationals. The Financial Express conducted a study in 2013 titled “Most multinationals keen to invest in India: Study” and noted: “…the survey indicates that, compared to other emerging Asian economies (China, Malaysia, Thailand and the Philippines ), India is expected to be on par in terms of FDI attractiveness, although the current performance of multinationals in India compares favorably with their activity in Southeast Asian countries. Compared to China, nearly 50% of respondents believe India is on par or better than China in terms of MNC performance.” As stated by AllBankingSolutions.com, in December 2011 the Indian government decided to remove the 51% limit on foreign investment for individual retailers, allowing foreign companies to invest 100%. This offers many opportunities for foreign direct investment in the paper sector. A company focused on beef burgers, steaks or barbecue would probably not be successful in the Indian market. They would avoid it altogether or change the menu options. India is clearly growing. In the blink of an eye it will surpass the market size of larger countries. With changes in government policies, population growth and increasing literacy; India will soon be one of the most attractive places to locate foreign direct investments. Works Cited The Indian Express Itd. The financial express. “Most multinationals want to invest in India: study.” 2005. Network. Np 15 November 2013.Rajesh Goyal. All banking solutions. “Foreign direct investment in India”. Nd Web. November 15, 2013.2013 Index of Economic Freedom. "India." 2013. Web. The Heritage Foundation. November 16, 2013.Indiaonlinepages.com. "Population of India". 2013. Network. Indiaonlinepages.com. November 16 2013.