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Investing in India

Ryan Hahn's picture

The WSJ reports that UK's Prime Minister David Cameron is pushing for India to lower its barriers to investment:

"We want you to reduce the barriers to foreign investment in banking, insurance, defense manufacturing and legal services, and reap the benefits," he said during a speech in the southern Indian city of Bangalore. Foreign investment in those areas is strictly limited or prohibited in India now.

Thanks to the recently launched Investing Across Borders (IAB) database, we can get a precise idea of what kind of restrictions India has on FDI in various sectors and how this compares to other countries in the region. As Cameron pointed out, India is quite closed to foreign investment in its insurance sector, scoring only 26 out of 100 according to IAB. (A score of 100 means the economy is completely open to FDI; a score of 0 means completely closed.) Banking is not nearly as closed, however. India scores 87, compared to a regional average of 87.2. 

For its part, the UK is almost completely open to FDI in all sectors -- with the exception of light manufacturing, with a score of 65. India is actually more open than the UK in this sector.  

Comments

Submitted by anonymous on
The UK, of course, was completely closed to all investment when it had India's levels of income. And after the mess that banks and insurance companies in the UK, Ireland, the US and other countries went through - and put the world through - is there great sympathy for opening up to the AIG's of the world? A good advice to all who post will be to think and talk to knowledgeable colldagues before penning a piece that is nothing more than a newspaper clip.

Submitted by Hitesh Waghela on
As the growing economy of India and the China at the rate of 8 to 9 % a year from last 3 years. But the increase in the GDP hamper the life of the common Man. Because the liveli hood of the common man was disturbed. Because previous there was only a single man earner in the family and whole family depend on him & still the family was happy. But because of the inadequte & not socio-eco growth the life of common man disturbed. The impact of that the all members of the family not get the work,Even they get the work they not get enoungh money to purchase the basic needs like Food,Shelter,& house. So this is the Sad story of this un economical growth. The reach become reacher & poor become poorer. What Indaia need is the Financial help at the cheaprate for Infrastrucal projects like Road,Dams,Electriciy,Telecomminication,Agricultrual etc. & not the volatime FDI investment in Stock Marmet & the Commodity Exchage Which is playing the gameble with the hard money of the indian people. Thank You CA,Hitesh Waghela 09822171974 hiteshwaghela_nsk@yahoo.com

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