1) Key Challenges for Foreign Investment in India:
o The regulatory framework in India can sometimes be unclear or subject to frequent changes, causing uncertainty for investors.
o Issues like delays in policy implementation, bureaucratic red tape, and inconsistent tax policies often deter foreign investors.
2) Other Factors:
o While India has a skilled labor force and a large consumer base, concerns around policy unpredictability remain the most significant challenge.
Incorrect Options:
· Excessive foreign competition: India regulates foreign competition through policies like FDI caps in sensitive sectors.
· Lack of skilled labor: India is known for its large pool of skilled professionals.
· Lack of consumer base: With a population exceeding 1.4 billion, India offers a vast consumer market.
Study Notes
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