Analysis of Foreign Direct Investment Policy in India

Abstract

Start-ups play a crucial role for the world as they cultivate the innovation of new ideas by the younger generation. This paper focuses upon the scheme of startups that has been introduced for the first time amongst the consolidated Foreign Direct Investment policy that has been in effect from August 2017. The paper starts off by explaining the operation of FDI, Make in India and startups. The intent and objectives laid down by the policy makers are specified in order to compare as to till what extent they are achieved after enforcement of the policy. The relation of GDP and economic growth is explained along with the main and usual challenges that are faced in order to set a startup. In the later section of the paper, pros and cons of the policy are discussed, keeping focus upon how the policy lacks to impact one of the most influential sector of the nation, the agrarian field. In the last segment, the writer has tried to justify, explaining with a comparative model as to why India is not the most ideal place for implementation of such policies and how this ideality can be achieved.