Industry & Economy
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Foreign Direct Investment
`VAT is okay; what is not okay is unstable policy guidelines'
Our Bureau
New Delhi
,
Jan. 9
EVEN as foreign investors find India an attractive destination for investment, they rate instability in policy guidelines and ground level obstacles as detriments, according to industry chamber FICCI.
According to a recent assessment by the chamber of the factors influencing investor confidence in the country, manpower availability, stable exchange rates and Government incentives are the major areas that the Government would have to bear in mind in its quest for attracting large foreign direct investment (FDI).
The foreign investors feel that the introduction of Value Added Tax (VAT) regime is the biggest indirect tax reform that has been undertaken in the country. The foreign investors view the introduction of VAT as a positive change, says the chamber.
Further, India's compliance with TRIPS is likely to have a huge positive impact on future FDI inflows and it was felt that stricter enforcement of Intellectual Property Rights in India will attract more and more companies to set up their R&D centres here, feels the chamber.
India's integration into the global economy in the form of opening up its markets, reduction of tariff and non-tariff barriers will attract more and more foreign investors into the country, feels the chamber.
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