India Must Reduce Obstacles to Investment to Improve Economy
The Kochi International Container Transhipment Terminal (ICTT)
If India wishes to prosper alongside other nations in the near future they must allow foreign investments to participate in encouraging their growth. India must make a decision about whether to reduce barriers on foreign domestic investment or not. The benefits awarded to the country by reducing their barriers and policies to foreign domestic investments, would boost India’s economic growth and worldwide appeal.
Reducing barriers on traditional policies can do a lot for the economy of India, especially when considering their future. If India intends on making their global trade share stronger they must eliminate policies, and reach a consensus with foreign investors. However, in order for investors to participate, improvements to policies that will promote the development of a dynamic and efficient financial sector are urgently needed. Currently recognized as the world’s 19th largest exporter and 10th largest importer, the shipping ports in India can improve those trade numbers significantly by partnering with other prospering nations.
At the moment, trade and foreign direct investment obstacles remain strong in some key sectors, impairing India’s productivity and move toward improvements in policy. If India plans to become one of the top economies in the world, it must establish and amend rules to allow themselves to achieve that goal. For example, reducing policies in industries such as the shipping or logistics, would benefit India immensely. It has been suggested that through the introduction of foreign investment in these two key areas, that the country’s gross domestic product will improve exponentially, as well as their efficiency and effectiveness; within the global marketplace.
What is currently happening in India is an example of the continuing laying of the foundation, for the new global shipping trade system, that most every other country in the world; is now preparing/prepared for. India is a great example of how a country’s economy evolves and grows into what is considered to be an “emerging market”. Basically going from an economic status of poor to prosperous. India, with a growing population of over 1 billion, is considered to be one of the world’s new emerging markets. It’s large population base is now beginning to show signs of prosperity and that is encouraging investments, both local investors and abroad. Historically, it always has shown that foreign investments are absolutely necessary to grow a poor economy into a prosperous one. India, with regards to it’s enormous population, certainly is the one emerging market in the world; that has the biggest potential for investors.
Besides it’s container terminals, DP World’s Container Rail Road Services Pvt Ltd, has a category-I licence from the Railways to operate container trains. The company moves containers by rail and road, providing connectivity between the ports and the hinterlands. This kind of foreign investment in emerging markets, related to transport infrastructure, not only creates local jobs and generates prosperity; it also lays the foundation for an efficient trade transport system in the future. It is a win-win situation. DP World sees the vast potential for profitable investment opportunities, and has been quick to meet an increasing demand in India, as their economy grows steadily.