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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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Trade Policy

This chapter reviews India’s trade policy, which has resulted in a rapid transition from one of the most closed large economies of the world to a much more open one. It explains how India’s international trade agreements have complemented efforts to expand markets and reduce the cost of trading goods and services across borders. The chapter also examines India’s process of formulating trade policies and tariffs, the establishment of consultation mechanisms, and implementation challenges. 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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