In the International Spotlight: India

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1. What is the climate for doing business in India? Is it supportive of foreign investment? Answer: The climate for doing business in India is continuously evolving. Today, the Indian economy is characterized by a liberalized foreign investment and trade policy, the extensive role played by the private sector and deregulation. India is extremely supportive of foreign investment and in fact in recent years, the government has been relaxing its bureaucratic rules particularly those relating to foreign investments. The article mentions the increase in foreign direct investment to exceed $3 billion in the year 2000 and $27 billion in the year 2009. Though Indian population is very diverse in nature, English is spoken as the national language among the educated people. This makes the processes for a foreign investor smoother. Indian Government support the economic growth through foreign investment foreign investment has brought positive outcomes for the nation’s GDP. Moreover, expertise and skill is available for the technical fields in India. Wages and salaries are low compared to other first world nations. 2. How important is a highly educated human resource pool for MNCs wanting to invest in India? Is it more important for some businesses than for others? Answer: It’s very important for MNCs wanting to invest in India to have a highly educated human resource pool because it is very important for them to understand what they are getting into (specifically language & cultural barriers) and for them to adapt to the changes that come along with the corporation investing internationally. It’s evident that as India continues to grow and evolve so will the demands for well-educated people. The more successful and competitive India becomes, the more critical human resource management will be. Luckily, companies are beginning to see that an investment in human

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