Ritika ChitlangiaAIR 55 · CSE 2024 · 169 wordsTheir whole copy
Opening · a figure
In 2022-23, nearly $4 BN of FDI came in, which registered a fall of nearly 43%, as compared to the previous year.
Body · points
Factors causing apprehensions
skill mismatch → only 5% of Indians have formal job training.
Fragmented supply chains → adds 20-30% extra cost from manufacturer to consumer.
Inconsistant policy frameworks → ease of doing bussiness rank 63 (World Bank).
Vulnerability of indian stock markets → fall by 6.5% due to election results.
High taxation policies → Angel tax etc.
Corrective measures
Export oriented growth → labour intensive sectors like textiles, footwear etc.
consistent policy reforms to attract FDI → PLI, Make In India etc.
Regularised, simplified and single window clearance systems for FDI approvals.
currency stabilisation by RBI's forcing exchange management.
Taxation rationalisation to attract FDI.
Infrastructure creation → Bharatmala, Parvatmala etc. to reduce logistics cost from 18% to 11%.
Close · a summary
Thus, schemes like National infra Pipeline, increased automatic route FDI's are steps in right direction.
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