India in 2018 has fallen out of the top 10 destinations for FDI in terms of its attractiveness, according to an AT kearney report. India ranks 11 in the 2018 AT Kearney FDI confidence Index , down from 8 in 2017 and 9 in 2016
Policies that have deterred investors - at least in the short term:
- The 2017 nationwide goods and service tax, for example has faced implementation challenges, and the 2016 demonetization initiative disrupted business activities and weighed on economic growth.
-The report highlighted several of the reforms such as removing the Foreign Investment Promotion Board and Liberalizing FDI limits in key sectors that have maintained India's high ranking in term of FDI attractiveness.
Notable reforms done:
-Notable reforms include the elimination of the Foreign Investment Promotion Board, a government agency responsible for reviewing all potential foreign investment. The liberalization of foreign investment thresholds for the retail, aviation and biomedical industries.