I
ndia’s rank in the World Bank’s Ease of
Doing Business 2019 survey climbed 23
places to 77 among 190 countries surveyed,
making it the only country to rank among the
top 10 improvers for the second consecutive
year. This jump can be attributed to major
improvement in signifi cant parameters such as
starting a business, dealing with construction
permits, resolving insolvency, getting electricity
and getting credit, among other parameters.
India climbed another 23 points in the
World Bank’s ease of doing business index to
77th place, becoming the top ranked country in
South Asia for the fi rst time and third among
the BRICS. In the last two years the country has
climbed 53 notches, a performance matched in
the past only by Bhutan. The biggest gain was
in construction permit where India climbed
129 ranks to 52nd place on the back of targeted
government eff ort to remove hurdles.
India: A Preferred Destination for
Investment
Today, India has one of the most liberal
FDI regimes in the world. More than 90
percent of the FDI approvals have been put
on automatic route, i.e., without need for prior
government approval. The government has put
in place a policy framework on Foreign Direct
Investment, which is transparent, predictable
and easily comprehensible. This framework
is embodied in the Consolidated FDI Policy 1 .
Recent trends in India’s Foreign Direct
Investment (FDI) infl ow endorse the country’s
status as a preferred investment destination
amongst global investors. FDI inflow into
India has been steadily increasing, indicating
that the government’s eff ort to improve ease of
doing business and relaxation in FDI norms is
yielding results. India is among the top 10 FDI
destinations listed by UN Conference on Trade
and Development (UNCTAD). According
to the Department of Industrial Policy and
Promotion (DIPP), India received over $60
billion in FDI during April 2016-March 2017.
During April-September 2017, the total FDI
investments into India crossed $33.75 billion.
Top sectors attracting FDI equity flows
are telecommunications, trading, computer
hardware & software, automobiles, metallurgy,
chemicals, power, drugs and pharmaceuticals,
and construction. 2
The world business community has realised
the lucrative opportunities for doing business
in India in various sectors such as machinery,
engineering products, auto components, space,
aviation, biotechnology, telecommunications,
information technology, construction,
chemicals, apparels, pharmaceuticals, jewellery
etc. 3
India’s biggest
tax reform, the
GST, has also
been successfully
introduced. With
this, India has
moved towards
a modern tax
regime which is
transparent, stable
and predictable.
Investment Facilitation and Handholding
Doing business in India has never been
more easier. Government agencies pro-actively
act as facilitators by providing information
and substantial support to potential and
existing investors. ‘Invest India’ 4 is the offi cial
investment promotion and facilitation agency
of the Indian government. A team of domain
and functional experts provide sector- and
state-specifi c inputs and support to investors
through the entire investment cycle, from pre-
investment decision-making to after-care. It
assists with location identifi cation, expediting
regulatory approvals, facilitating meetings with
relevant government and corporate offi cials,
and also provides aftercare services that include
initiating remedial action on problems faced by
investors. The Department of Industrial Policy
and Promotion (DIPP) plays a pro-active role in
resolving problems faced by foreign investors
in the implementation of their projects.
References:
1 h t t p : / / w w w. m a k e i n i n d i a .
com/documents/10281/0/
Consolidated+FDI+Policy+2017.pdf
2 More details of FDI infl ows into India
are available at https://www.ibef.org/economy/
foreign-direct-investment.aspx
3Details on sector-wise investment
opportunities in India are available at www.
makeinindia.com/sectors
4 See www.investindia.gov.in
5 https://economictimes.indiatimes.com/
news/economy/indicators/top-rbi-man-
questions-infl ation-data-calls-current-method-
outdated/articleshow/66931447.cms
2019 • INDIA-MALAWI • 29