Internationalisation, Trade and Markets - Essay Example

aracterized as rather disappointing if taking into consideration the development of the country’s industries but also the availability of resources for supporting further industrial growth. Since December of 2014 a radical decrease of FDI in India has been reported; in February of 2014 the country’s FDI reached negative levels (Trading Economics 2014), a fact that should lead to severe concerns the India government. However, according to the graph in March and April of 2014 India managed to attract quite high amounts of FDI so that severe threats against the national economy are eliminated.

In India, FDI has highly contributed in the country’s growth. More specifically FDI in India has been used for developing critical projects in regard to the country’s infrastructure, especially electricity and transportation (Economy Watch 2010). The Indian government has supported the extensive use of FDI in infrastructure-related projects: for example, the government accepted ‘the 100% funding by FDI of construction projects referring to bridges and tunnels’ (Economy Watch 2010, para.6); a ‘limit of $352,5million’ (Economy Watch 2010, para.6) for protecting the involvement of the country in excessive loans.

Within 2013 a reform of India’s regulations in regard to FDI was initiated by the Indian government; flexible terms were introduced in regard to FDI on projects related to various industries, such as ‘telecommunications, defense, oil and power exchanges’ (India Brand Equity Foundation 2014) In any case, anytime that an FDI project is to be promoted in India it is necessary for the relevant authorities to check the process, as of its alignment with existing laws, especially the Companies Act of 1956 and the SEBI (Security and Exchange Board) regulations (Reserve Bank of India 2014).

The infrastructure of India needs further improvement. Many areas of the country suffer from lack of appropriate infrastructure, a fact that prevents foreign investors