Ankoor yogesh kulkarni dhruv poojari aarthy chellsamy
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| 10. Findings Upon further analysis of the initial data we can comedown to the Quantitative analysis tables. Upon studying the same we can come to certain findings, as mentioned below:Sectors like Agriculture, mining, chemicals and fertilizers have a low coefficient which suggests that there is no significant relationship between the values of FDI and promotional expenditure. These sectors could be plagued from lower availability of infrastructure or heavy dependence of seasonal natural factors for yield. The low coefficient does not necessarily mean that there is no FDI inflow, when in fact the Inflow maybe fairly high and the boost would be provided by other initiatives or government factors which are extraneous variables in this case. Other factors like improper promotion targeting and the lack of agreements with the key markets on an international level can also contribute significantly to the lack of a definitive coefficient Tathapi (UGC Care Journal) ISSN:2320-0693 Vol-19-Issue-24-June-2020 Page Copyright ⓒ Author The defence sector has a high level of negative correlation which may not necessarily indicate counterproductivity in terms of expenditures but maybe attributed to the strict rules and regulations along with low percentage of inflow applicable to the FDI inflow in the sector For the mining sector, it is seen that in the year 2018-2019, even though the promotional expenditure is very low the FDI inflow has remained the highest which has skewed the coefficient. This goes onto indicate one of two things either the promotional activities taken up were highly effective or external factors were completely responsible for the jump and promotional activities had no role to play. In the sectors of power, Telecommunications and IT that have a high negative coefficient, it can be regarded that an increase in Promotional Expenditure causes a decrease in FDI inflow that is almost perfectly correlated. It cannot be perfectly regarded that the expenditure is counterproductive but instead there is some other initiative that is boosting the FDI Inflow for these sectors. For any of the sectors, since Promotional Expenditure is just one type of factor that influences the FDI inflow, it would not be surprising for other initiatives like revenue and operational initiatives that control the sector to have taken the lead and provided the required boost. The highly FDI Inflow in terms of telecommunication and IT can be attributed to the fact that India is rapidly becoming technologically adept which helps it to become a preferred destination for the other countries to invest in, since the increase in growth of the Telecommunications and IT sector helps fuel the growth of not only other dependent sectors but also grow the country as a whole. Tathapi (UGC Care Journal) ISSN:2320-0693 Vol-19-Issue-24-June-2020 Page Copyright ⓒ Author The textile sector has a negative coefficient that is fairly high. The government has agreed that the textile sector has a lot of untapped potential and is very large in terms of number of employees. It is surprising to see that even though the textiles sector is huge sector in India and also has a 100% automatic FDI route enabled, it is notable to generate any significant amount of Inflow. The lack of trade agreements with key apparel markets, underdeveloped infrastructure and complex labour laws make it impossible for the sector to have FDI productivity (Indian express) (II. Also, women constitute to the majority of the garment workforce, and since they are not allowed to work in night shifts, this again suppresses the sector potential. There is a spike in the Inflow in 2016-2017 which could be attributed to the “Vaastra” apparel and textile Fair started by the central government. But this spike didn‟t survive and we seethe normalization of the FDI inflow values for the sector for the nextfinancial year. Thus, even though the promotional expenditure maybe fairly high, these demotivating factors kill the possibility of higher FDI Inflow. The fairly indicative positive correlation for some sectors like the Food Processing and Petroleum and Natural gas indicates better effectivity of promotional expenditure in terms of FDI Inflow. The coefficient for the Information Broadcasting sector shows almost perfect correlation between the expenditure and the FDI inflow. This also means that the promotional activities done are highly effective in terms of bringing in foreign funds. It can certainly be said the money being spent by the government on this sector is well utilized and fruitful. This can be attributed to a lot of factors wherein companies might be highly motivated to invest in India. This also indicates that promotional activities area major factor in the sector to bring in FDI. The tourism sector isn‟t very dependent on the promotional expenditure to increase its FDI inflow since the coefficient is positive and just 0.4. Thus there maybe some Tathapi (UGC Care Journal) ISSN:2320-0693 Vol-19-Issue-24-June-2020 Page Copyright ⓒ Author effectiveness of promotional activities to FDI in the sense and increase in promotional expenditure does lead to an increase in FDI but not in a very large manner In 2015-16, it can also be seen that after an initial spike the FDI inflow comes down and then has a gradual upward trajectory. This can be attributed to the MAKE IN INDIA initiative that may have gained some momentum which drained soon after its spike and also to the 100% automatic route Inflow allowed by the government. Overall correlation coefficient table presents a coefficient of a negative 0.17 which goes show that there is no significant relationship between the expenditure and the inflow when all the sectors are analysed together. This can also be attributed to the fact that Government initiatives and plans may not treat all the sectors equally and have different percentages of allowed FDI by any of the routes. Other economic factors and the law of demand and supply may also be relevant for some particular sectors, and the involvement of political factors in sectoral promotions should not be ignored. The Mean factor calculation table in quantitative analysis provides a crucial input that will later be used in the simpler version of the predictive model. But in short, it comprises of the mean of the averages for the factors to be multiplied with the expenditure in order to arrive at the Inflow for that particular sector. Download 494.04 Kb. Share with your friends:
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