Reserve Bank of India has claimed that the environment sensitive policies and procedures are directly affecting the FDI.
The inflows in FDI as per April – Nov ’10 have been by various sectors like mining, construction, business services etc. Individual preferences in sectors have directly affected the inwards to FDI. Certain policies which manifest the episodes in mining have integrated townships, constructions etc. The following also highlights the delay in land acquisition, issues and the availability of quality infrastructure.
All these add up to the share of India in the assumptive FDI flows as per RBI.
The central bank has claimed that the growth of services is skeptical in nature and thus has to be resolved at its earliest. The global recovery has become more robust. The FDI thus has to get more structural in nature.
Source: Indiatimes.
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