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Updated January 28th, 2024 at 16:31 IST

Boosting economic growth: India's push for overseas investments

The government's commitment to attracting both domestic and foreign investments is evident from past budget allocations and initiatives.

Reported by: Business Desk
Overseas Investments in India
Overseas Investments in India | Image:Freepik
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Union Budget 2024-25: As India gears up for the Union Budget 2024-25, the focus on promoting overseas investments takes center stage. PHD Chamber of Commerce and Industry has given recommendations to boost such investments in the country and foster economic development.

Overseas Investments

The promotion of overseas investments, especially from non-resident Indians (NRIs), is deemed crucial for India's economic strategy. The government's commitment to attracting both domestic and foreign investments is evident from past budget allocations and initiatives. Notable efforts include substantial investments in critical transport infrastructure projects and schemes like Mega Investment Textiles Parks (MITRA) to boost employment and economic growth.

Challenges in Investment Landscape

Despite these efforts, the investment landscape poses challenges, with bureaucratic red tape and administrative delays being significant deterrents. The complexity of India's regulatory environment, varying across states and layers of government, can be overwhelming for potential investors.

Streamlining Processes for Investor-Friendly Environment

To enhance the ease of doing business, the government needs to streamline approval processes, reduce delays, and simplify regulations. Collaboration with government agencies, financial institutions, and initiatives like Invest India can play a pivotal role in attracting a diverse pool of investors, especially for micro, small and medium enterprises (MSMEs), startups, and small businesses.

Focus on Regional Disparities

Addressing regional disparities in infrastructure, resources, and the investment climate is crucial. Encouraging investments in less developed regions through incentives and support mechanisms can create a more balanced investment landscape.

Attracting Foreign Direct Investment (FDI)

India's emergence as a preferred destination for Foreign Direct Investment (FDI) is notable. The 'Make in India' and 'Atmanirbhar Bharat' campaigns, coupled with a focus on strengthening India's position in global supply chains, have contributed to increased FDI inflows.

Simplifying Policies for FDI

However, sector-specific FDI caps and restrictions present challenges for investors. Simplifying these policies, addressing concerns about subjectivity and potential delays in national security reviews, and harmonising procedures and approvals are essential steps to make India more attractive for foreign investments.

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Published January 28th, 2024 at 16:31 IST

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