Ankoor yogesh kulkarni dhruv poojari aarthy chellsamy



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IMPACT OF FDI PROMOTIONS ON VARIOUS SECTORS OF THE INDIAN ECONOMY TATHAPI
12. Conclusion
The correlational analysis gives us a very clear picture of the relationship between the FDI promotions and the actual FDI inflow for the sector. There can be various reasons owing to these mixed results that blur the pillars of decision making in the case of FDI promotions. The attribute of promotional effectiveness that stands on the traditional STP (segmentation, targeting and position) model can also be called into question. Each of the factor in that model may have failed individually of in cohesion that may decrease promotional effectivity. There are various barriers to promotional effectiveness that must be overcome for the expenditure to be justifiable. These barriers must be dug deep into for each of the sectors and they should be quantitatively and qualitativelyanalysed to understand their effects on various sectors. The interplay and dependence of expenditure on other government plans and initiativesincluding the Financial budget for each of the years cannot be ignored. The factors that increase productivity of the sector in terms of FDI inflow and their impacts should be closely examined so that these can be replicated in other sectors as well. Some of the easily visible barriers include the restrictions on FDI in India. Some of these are stringent labour laws and performance requirements (Singh) (III. The MAKE IN INDIA initiative is


Tathapi
(UGC Care Journal)
ISSN:2320-0693
Vol-19-Issue-24-June-2020 Page Copyright ⓒ Author helping to ease these constraints of foreign investment in the Indian economy. Some of these initiatives include increasing the percentage of FDI in many of the Indian economic sectors including coal which will help it to become lucrative for foreign companies (NDTV profit,
2019) (IV. Contract manufacturing has been incentivized and the allowance of single brand retail has been done (India briefing, 2019) (V. The next thing to be analysed would be to check for each of the sectors for low correlation, since there is a possibility that other roadblocks may cause negligible FDI which may include but is not restricted to political control and sector specific restrictions. There have been restrictions on various profitable sectors like the Real estate and National aviation sector (UK INDIA Business Council, 2014) VI.

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