Foreign Direct Investment into India: An Anatomy of Issues and Challenges

Abstract

India is getting younger while the world is ageing. This provides the country with both opportunities and challenges. Of course, it presents the country with a potential demographic dividend. At the same time, providing productive jobs to the increasing numbers of Indian youth is becoming a formidable challenge for the Indian policy makers. One of the time-tested modality of addressing this challenge is by attracting foreign direct investment (FDI). To make India attractive for FDI, there is much merit in the country easing the overall environment for foreign direct investment, strengthening its infrastructure, forging partnerships with other countries, simplifying the tax system along with a reduction in the tax burden on investors, and harnessing the benefits of Artificial Intelligence technology.