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OECD Investment Policy Reviews: India 2009

image of OECD Investment Policy Reviews: India 2009
This review of India's investment policy finds that India has made tremendous progress in building a policy environment to encourage investment. As a result, the country’s economy is growing more rapidly and FDI inflows have accelerated impressively. However, investment remains insufficient to meet India’s needs, particularly in infrastructure. Current efforts to strengthen and liberalise the regulatory framework for investment need to be intensified. India’s well-developed economic legislation should be implemented at an accelerated pace both at national level and right across India’s States and Union Territories.

OECD Investment Policy Reviews: India charts India's progress in developing an effective policy framework to promote investment for development, especially since the acceleration of economic reform from 1991 onward. It focuses on policies towards investment, trade, competition and other elements of the business environment. Finally, it outlines some of the challenges of implementing national-level reforms at state level.

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Other Aspects of the Policy Framework for Investment

This chapter examines enabling factors in India’s investment environment, including tax policy, corporate governance, policies for promoting responsible business conduct, human resource development, infrastructure and financial sector development, and public governance. It highlights related measures taken by the government of India, such as the e-governance programme to enhance efficiency and transparency in corporate and public governance and public-private partnership (PPP) initiatives to develop the country’s infrastructure. The analysis is structured around the questions set out in the Policy Framework for Investment (PFI). Each section is preceded by the relevant PFI question, which serves as general context for consideration of main policy areas.

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