Since 1991, several economic reforms have been initiated in India, which have considerably improved economic situation in country.


However, there are several issues :


  • Investment process/system is very complex for retail Indian and foreign investors, the government seeks foreign institutional funding, while domestic and foreign  retail investment remains untapped.
  • Overall business environment is not good even when compared to other comparable developing countries like Thailand for example.
  • Archaic labour laws, reforms have been long overdue.
  • Foreign institutional investors who want to invest in India find it difficult to invest in individual projects due to corruption and other bureaucratic issues.
  • Tax laws are complex and this causes several disputes.
  • Several sectors doesn’t have consistent import export policy, major one being Agriculture and Defence.
  • Contract enforcement is very poor and a tedious process.
  • There is a large financial and digital divide.
  • Due to insufficient logistic sector, export competitiveness has been affected

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