| The Indian economy has been booming ever since India came out of the shackles of imperialism and emerged as a politically, socially as well as financially independent nation. Although India attained its freedom more than about sixty years ago, the emergence of the Indian economy on the global scene has been a rather recent development. This is because of the realization of the true economic growth potential of India, by the foreign investors as well as business houses. Till about the recent times. India continued to be a whole soul agricultural economy, which had been impregnated with various types of beaurocracy, exploitation and corruption. In spite of this, the westerners saw tremendous potential in India to develop as an economically strong adobe for investment and ploughing in of cash in order to start off a new venture. But till recently, there were various jurisdictions prevalent in the code of law in India, that prevented the full strength inflow of foreign direct investment in India. But fortunately for all, the Indian government was quick to realize the actual potential embattled in the Indian economy and what was holding it back. Thus finally in the year 2005, the Indian central government passed a jurisdiction allowing a cent percent foreign direct investment into the Indian economy, in various sectors.
This was one of the major steps taken into the direction and it opened the doors for a number of foreign investors to come to India and plough in their money into various segments of the market. The sectors of the Indian economy to benefit the most from this were trelecom, automobiles, retail, real estate and construction bussiness.Of lately, other sectors such as pharmaceuticals as well as chemicals have also seen the magic of foreign direct investment. There are still some sectors like arms and ammunitions, transport and railways etc, which are still prohibited to entertain any type of foreign investment.
Apart from the government laws and jurisdictions, there are various other factors behind the success of foreign direct investment initiatives in the country. The most crucial factors include the tremendous support base provided by India to aid the success of the projects laid out by these foreign investors. The unending supplies of electricity and water services and facilities are one of the most crucial components of these. This has been possible as India is blessed by nature with a host of ever flowing rivers, which are like the lifeline to every activity that takes place in India. Apart from this, various types of raw material desired by these manufacturing projects such as coal, metals, minerals etc. are available abundantly in India.Thus, the instant availability of these raw materials is crucial in saving any kinds of delays and cutting down coss.Another favorable factor in India is the availability of a large workforce, which majorly dwells in villages and rural areas of the country.
All these factors and more can be distinctly recognized as the various factors that have led to the success of the foreign direct investment initiatives in the country.
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