Business Environment by Pearson

300 | Business Environment

Box 13.1 Six Mantras for FDI

1. Legislative and policy reforms:

• Remove the unnecessary restrictions on equity partici-

pation by companies,

• Standardise the guidelines for environmental issues,

• Strengthen the intellectual property rules, especially

in the sectors where India has a comparative advan-

tage with its educated and skilled workforce, and

• Reduce the variance of FDI laws that are based on sector.

2. Government processes and machinery:

• Increase the areas for automatic approval,

• Reduce the role of the Foreign Investment Develop-

ment Board (FIDB), and

• Streamline the number of agencies ...