This paper critically evaluates the impact of policies implemented by the Government of India on Foreign Direct Investment (FDI) in infrastructure sectors in India. This paper considers annual FDI inflow data from 2006 to 2019 for seven areas of infrastructure sectors, namely telecommunication, construction, petroleum and natural gas, port, air transport, sea transport, and railways. Recent trends in FDI inflows in the infrastructure sector depict that FDI is attracted mainly by telecommunications and construction sectors while sectors like the port, energy, air terminal expansion, and transportations are unable to attract FDI inflows. Therefore, there is a need to create sectoral policy reforms by the Indian government to allure higher FDI inflows in these sectors. The Reserve Bank of India should implement monetary policy effectively to control the inflation rate and exchange rate. Similarly, the government should make necessary changes in its fiscal policies to decrease the tax rate in India.
Government Policies and Foreign Direct Investment Inflows: Evidence from Infrastructure Sector in India
stud. in Infrastructure & Control
2021-12-14
9 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
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