The Indian Economic Environment

1. What is the climate for doing business in India? Is it supportive of foreign investment? The climate for doing business in India is continuously evolving. Today, the Indian economy is characterized by a liberalized foreign investment and trade policy, the extensive role played by the private sector and deregulation. India is extremely supportive of foreign investment and in recent years, the government has been relaxing its bureaucratic rules particularly those relating to foreign investments. 2. How important is a highly educated human resource pool for MNCs wanting to invest in India? Is it more important for some businesses more than for others? It’s very important for MNCs wanting to invest in India to have a highly educated human resource pool because it is very important for them to understand what they are getting into (specifically language and cultural barriers) and for them to adapt to the changes that come along with the corporation investing internationally. Obviously, as India continues to grow and evolve so will the demand for well educated people. The more successful and competitive India becomes, the more critical human resource management will become. Many companies are beginning to see that an investment in human resource processes and outsourcing services that can help make their company successful is a good way to gain competitive advantage for their organizations future. It is more important for some businesses than for others depending on the industry they are in and the level of technology they use. Some MNCs use advanced technology to help them communicate, produce, and deliver their goods and services internationally which has ultimately led to some experts predicting that in the future, technology has the potential to displace employees in all industries. 3. Given the low per capita income of the country, why would you still argue for India to be an excellent place to do business in the coming years? India has multiple