ABSTRACT

Though India stands today as the largest democracy, its administrative as well as the political set
up has many flaws and shortcomings. The Indian system of administration and governance is
impregnated with flaws like shortages of power, bureaucratic hassles, political uncertainty, and
infrastructural deficiencies. In spite of all these political shortcomings, India is perceived to be
one of the most lucrative grounds for investing, in the eyes of the wealthy European as well as
American investors.
Various Indian market sectors have experienced a recent progress and boom, owing to the
investment made in them as well as due to the relaxation of rules and regulations that had been
levied on the foreign direct investment in India, by the Indian government. One of such sectors
of the Indian economy that has seen a sudden booming phase of prosperity and sustained growth,
is the real estate as well as the construction business in India. Before 2005 the Indian law
permitted only the NRIs or persons of Indian origin to make foreign direct investment in India.
Even these people had been levied with many restrictions. With the upliftment of these
restrictions, a host of foreign investors and companies stormed India with their products, services
and business ideas along with their money. This money in turn helped the Indian economy to
grow in volume as well as statures. Many major industrialists and business tycoons such as Lee
Kim Tah Holdings, Salim Group from Indonesia, Edaw Ltd. from USA, Emaar Group from
Dubai, IJM, CESMA International Pvt Ltd, Ho Hup Construction Co., from Malaysia, Evan Lim
and Keppel Land from Singapore etc. Japanese and Korean firms and businesses houses like
Suzuki, Hyundai and Daichi have expanded their businesses to India with the boom of foreign
direct investment in India. Many of the Indian sectors such as Tata Motors have thus benefited
from these foreign direct investments, and in turn given lucrative returns to the investors as well.
The future prospects of these foreign investors in India look a bit gloomy at the moment due to
the global meltdown and recession that the world is facing. But as the economies start to recover,
the boom in the foreign direct investment segment is bound to return, and that to with a big bang.
SUBMITTED BY: SPANDAN SARKAR
ROLL NO: 1182103
SECTION: B ( TOPIC - Foreign Direct Investment (FDI) policy in India, 2012 an overview )