Business Environment, 1st Edition by Pearson

| 254 | Part III: The Economics of Development

There are several strictures passed against foreign investment

such as unwarranted special concessions extended to foreign

investors which deny a level playing fi eld to Indian enterprises,

heavy payment of dividends and royalty to their principals abroad,

the elitist orientation of production, agreements favouring foreign

fi rms, over import of obsolete technology-based equipment, distortion

of economic structure and the political clout they exercise. While

many of these criticisms may be true to an extent, the adverse impact

of these can be curbed by a proactive and vigilant government

prompted ...