08 NOV,2020 | MEDC
With government finances being strained due to declining tax revenues and increase in pandemic-related expenditures, it is logical to invite foreign investment to bridge the gap in public infrastructure and other capital expenditure for reviving the economy. Regardless of the ultimate outcome of the US Presidential election, whoever wins will ensure that the already fragile global economy does not encounter any more setbacks. From that perspective, there is nothing to fear. It is also notable that foreign portfolio investors have preferred to invest in equities of mainly India and China in FY20, even as they have deserted most other emerging markets. That clearly shows where the potential of the future lies. Global investors are guided by rationality, and they are willing to park their money in any country where policies are progressive and projects are promising. Keeping this in mind, the government of India needs to get more serious about avoiding policy inconsistencies and enhancing the ease of doing business in the economy.
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