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