Foreign Direct Investment

GOVERNMENT NOTIFIES TWO NEW SPECIAL ECONOMIC ZONES (SEZS) IN PUDUCHERRY

India’s SEZ 2.0 framework and Union Budget 2026-27 introduce concessional domestic sales and shift performance metrics to net positive growth. These reforms aim to boost global competitiveness while mitigating challenges posed by the OECD's fifteen percent Global Minimum Tax rules.

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WHAT IS CHINA’S HAINAN FTP INITIATIVE?

China's Hainan Free Trade Port implemented island-wide customs closure, creating a zero-tariff hub. Offering 15% corporate taxes and a 30% value-added processing exemption, it aims to reshape global supply chains while rivaling Hong Kong.

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INDUSTRIAL PARKS IN INDIA : OPPORTUNITIES, CHLLENGES & THE WAY FORWARD

Industrial parks are planned industrial ecosystems that provide serviced land, shared infrastructure, and simplified governance to accelerate manufacturing growth in India. Backed by initiatives such as plug-and-play parks, the India Industrial Land Bank, industrial corridors, and the Industrial Park Rating System, they play a crucial role in attracting investment, generating employment, promoting sustainability, and strengthening India’s integration into global value chains, while also requiring continuous upgrades to address infrastructure gaps, regional imbalances, and environmental challenges.

 

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FALL IN FDI INFLOW

Foreign Direct Investment (FDI) plays a crucial role in economic growth by bringing in capital, technology, and job opportunities. To improve FDI flows, countries must focus on creating a stable and investor-friendly environment through regulatory reforms, infrastructure development, skilled workforce, and transparent governance. Targeted sectoral strategies, digitalization of approvals, and strong investment promotion agencies can enhance investor confidence. Additionally, international trade agreements, performance-based incentives, and sustainability-focused policies are key to attracting high-quality, long-term investment.

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