Driving Factors:
1️⃣ Improved Competitiveness: India's improved ranking in the World Competitive Index (40th in 2024) and the Global Innovation Index (40th out of 132 economies in 2023) showcases its progress in creating a more competitive and innovative business environment.
2️⃣ Global Investment Hub: India's position as the third largest recipient of greenfield projects and the second largest recipient of international project finance deals (World Investment Report 2023) underscores its growing importance in the global investment landscape.
3️⃣ Ease of Doing Business: Significant improvements in the World Bank's Doing Business Report (reaching 63rd rank in 2020 before its discontinuation) reflect successful efforts in streamlining regulations and creating a more investor-friendly environment.
4️⃣ Pro-FDI Policies: The government's policy of allowing 100% FDI under the automatic route in most sectors, coupled with tax reforms like the abolition of angel tax and reduced corporate tax rates for foreign companies, has incentivized foreign investment.
5️⃣ Make in India Initiative: This flagship program has played a crucial role in promoting domestic manufacturing and attracting foreign investment in key sectors. The liberalization of sectoral policies and the implementation of the Goods and Services Tax (GST) have further enhanced investor confidence.
Other Notable Developments:
The government's focus on attracting FDI in strategic sectors like space further demonstrates its commitment to leveraging foreign investment for technological advancement and economic growth.
1️⃣ Improved Competitiveness: India's improved ranking in the World Competitive Index (40th in 2024) and the Global Innovation Index (40th out of 132 economies in 2023) showcases its progress in creating a more competitive and innovative business environment.
2️⃣ Global Investment Hub: India's position as the third largest recipient of greenfield projects and the second largest recipient of international project finance deals (World Investment Report 2023) underscores its growing importance in the global investment landscape.
3️⃣ Ease of Doing Business: Significant improvements in the World Bank's Doing Business Report (reaching 63rd rank in 2020 before its discontinuation) reflect successful efforts in streamlining regulations and creating a more investor-friendly environment.
4️⃣ Pro-FDI Policies: The government's policy of allowing 100% FDI under the automatic route in most sectors, coupled with tax reforms like the abolition of angel tax and reduced corporate tax rates for foreign companies, has incentivized foreign investment.
5️⃣ Make in India Initiative: This flagship program has played a crucial role in promoting domestic manufacturing and attracting foreign investment in key sectors. The liberalization of sectoral policies and the implementation of the Goods and Services Tax (GST) have further enhanced investor confidence.
Other Notable Developments:
The government's focus on attracting FDI in strategic sectors like space further demonstrates its commitment to leveraging foreign investment for technological advancement and economic growth.