Klimat inwestycyjny w Indiach
Investment climate in India

Summary/Abstract: Purpose The paper focuses on various factors influencing India’s investment climate, with particular emphasis on direct investment from abroad. Design/methodology/approach A combination of descriptive and statistical analyses has been used to analyze the different aspects of the investment climate in India. The analysis is based on data coming from different sources as well as legal documents and research papers. Findings The strength of India is primarily knowledge, human resources and a good macroeconomic prospect, while insufficient infrastructure, bureaucracy and corruption appear to be the most serious barriers to carry out investment projects. There is also an urgent need to increase the pace of reforms in the legal system, including the tax law, labor law and business regulations. However, the investment climate in India, despite the many shortcomings mentioned above, is regarded as friendly to investors. The dynamic growth in FDI flows to India (except at the time of the global financial crisis) and the high position in the rankings of investment attractiveness seem to confirm this thesis. Research limitations/implications The paper undertakes a macro-level analysis treating India as a homogeneous subject and not dealing with the regional differences in the investment climate. Originality/value The paper presents a comprehensive look at the issue of the investment climate in India, which goes beyond the so-called investment freedom, which is a set of formal and informal barriers hampering investment inflows to the economy as well as incentives and other facilitations attracting them. To locate the best possible place for an investment, a foreign investor takes into account a much broader context, being the result of various factors, including political, social and economic issues.

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