Changes in Foreign Investment Policies of Modi Administration

Abstract

2015 is the first year of Modi in power. Upholding the friendly and open-minded attitude to foreign investment, Modi administration has further broadened the field of foreign investment, revised the foreign investment-related laws and regulations such as tax law, labor law, land acquisition law, bankruptcy law and intellectual property law, and introduced a new series of policies. Moreover, with “honest government” as a guide, it is also eliminating the corruption and inefficiency in the civil service system. However, affected by the domestic complicated political and cultural environment, Modi’s New Deal has suffered varying degrees of obstruction. Incessant protests spread across the country. Important amendments to such laws as labor law and land law are trapped in the Parliament. Many of the reforms remain at the policy level, and are difficult to rise to the height of the law. In 2016, Modi administration found it necessary to seek a balance between “openness” and “protection” before it ultimately enables the Indian economic reform to get on the right track.