Reviving the foreign investments: Will it help the Indian business scenario?

Reviving the foreign investments: Will it help the Indian business scenario?

An old and time tested formula to ward off the evil of a failing economy is to infuse a fresh lease of life with foreign funding. Well, the Indian eco

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SIIBAn old and time tested formula to ward off the evil of a failing economy is to infuse a fresh lease of life with foreign funding. Well, the Indian economy has witnessed the success of this formula in the past. Once again, the economy is faced with fears of recession and needs a new harbinger of good hope. The government has been trying its best to revive the economy by using different measures. The recent announcement of the new RBI governor was also an effort in this direction. Ever since the appointment of the new governor, a lot of things have changed for the better. For once, if you are not seeing an incessant rise in the value of the rupee, at least the streak of downfall or devaluation has been stopped.

In an effort to continue this trend of revival, the government has decided to ease the rules for the foreign investors. The recent devaluation phase of the rupee had led to the investors losing faith in the ability of the Indian economy. Another factor leading to the pull out of the foreign investment is the uncertainty of the upcoming polls. However, now that the things are looking up, it is time to woo back the foreign investors. Therefore, the government and Securities exchange board India have jointly come with a plan to make it easier for foreign investors to come to India. From simple things like minimizing paperwork to faster approvals, the government is going out on all fronts to pump fresh investments to support the economy.

There is support from the reducing trade deficit and other economic welfare measures to increase the productions as well. Earlier in the year, when the rupee began to tremble the foreign institutional investors were quick to pull out their funds. In fact, in a single quarter, the Indian debt market saw a major pull back of more than 9 billion American dollars. However, through all these measures, the singular focus of the government is on bringing in investments for a relatively longer term.

As future managers, it is imperative for participants of the MBA in International Business, MBA in Agribusiness and MBA in Energy & Environment to know the implications of such diverse scenarios. After all, the ability to take a wise business decision is possible only when the prospective managers are taught to weigh the pros and cons.

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