Fdi in India

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of infrastructures because it is the fastest-growing large economy in the world, so the government needs to decide in what infrastructures to invest. Poverty and density of India’s population make these structure issues more pronounced and they affect a lot of industries due to the poor conditions of roads and highways, the lack of access of rural people to roads, the inadequate capacity of ports and airplanes and the lack of connection to the national electrical grid.

The last challenge to attract FDI is the low level of education, skills and learning outcomes of India’s population – not matching the market expectations – especially due to the lack of education’s quality, an archaic course, poor infrastructures and limited focus on development skills.

After this brief analysis, my first recommendation is the creation of Joint Ventures between local companies and MNCs to control the goods sold and to share knowledge to learn from each other and, consequently, to overcome the cultural differences and attract both traditional and non-traditional Indian consumers who are very complex and in a constant change.

Besides this, my second recommendation is to invest especially in infrastructures that affect the retail industry, since it is one of the biggest sector in India and responsible for a huge part of exports and for the employment of a lot of people. So, India should invest in roads and highways to avoid supply chain constraints and to decrease the lead-time and the inventory holding and carrying costs; and invest in online infrastructures to increase Internet penetration and decrease the difficulties with online payments.

My last recommendation involves an investment in the education system to increase the quality of India primary schools, to increase the limited seats in Universities, to change and diversify the learning subjects and to create more practical classes. Besides this, MNCs could also help by creating a solid system of education-apprenticeship that consequently will attract good local workers and improve efficiency and productivity.