FDI Reforms in South Asia: Unfinished Agenda, Future Reforms, and Challenges

  • Pravakar Sahoo
  • Geethanjali Nataraj
  • Ranjan Kumar Dash


In the World Bank’s Doing Business index, the South Asian region ranks low. The low rank suggests that firms face a difficult business environment there. The subindices suggest that South Asian firms encounter serious obstacles in dealing with infrastructure, the tax system, the bureaucracy, political instability, corruption, land acquisition, and environmental issues and in enforcing contracts. Now that it has been empirically proven that FDI benefits South Asian countries, the region undertakes measures to improve this scenario and ensure that the region continues to attract FDI in a sustained manner. This final chapter asks two key questions: (1) What are the major current constraints to FDI inflows? (2) What policy priorities/reforms can enhance FDI?

This chapter explores the difficulties arising out of economic stability, tax and other incentives, labour regulations, work ethics, social and economic infrastructure, and costs of production, potential domestic market, and an overall assessment of political and economic conditions.


Foreign Investment Environmental Impact Assessment Infrastructure Project Special Economic Zone Land Acquisition 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer India 2014

Authors and Affiliations

  • Pravakar Sahoo
    • 1
  • Geethanjali Nataraj
    • 2
  • Ranjan Kumar Dash
    • 3
  1. 1.Institute of Economic Growth (IEG)Delhi University EnclaveDelhiIndia
  2. 2.Observer Research Foundation (ORF)DelhiIndia
  3. 3.Indian Council for Research on International Economic Relations (ICRIER)DelhiIndia

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