The rapid growth of the country's economy requires an increase in investment in new projects

- Foreign investors prefer to invest in existing projects instead of setting up new ones

India's economic growth slowed down long before the Corona era, yet the central government has set a target of boosting the country's economy to પાંચ 5 trillion. Growing India's economy to પાંચ 5 trillion requires massive investment at home and abroad. The highest investment in any country is behind infrastructure. Infrastructural development which can be the engine of economic development of that country. India also plans massive infrastructure spending to boost the country's economy to પાંચ 5 trillion. Given the lack of enthusiasm among domestic investors to invest behind infrastructure in the country, the government is trying to attract large investments from abroad.

It is true that foreign direct investment (FDI) comes to the country but it is more in brownfield i.e. existing projects rather than brand new projects i.e. greenfield projects. These projects are seen to have more inflows in the form of mergers and acquisitions. Very little of the country's total FDI flows into new assets, while India's economy does not grow as expected as most of it remains in existing assets. The company transfers its equities to the investor against the FDI money coming into the existing projects.

The slowdown in investment in new projects in India is due to the different regulatory policies of different states of the country and the difficulties in starting a business. Investors are facing many challenges, especially in acquiring land to set up industries. Although India has made progress in recent years in the World Bank's Index of Ease of Doing Business, it has lagged behind its rivals in the developing world or the developed world. India will be forced to show some other deposit aspects to persuade global investors to invest in the country as the World Bank has now stopped releasing the Ease of Doing Business Index after it came out that the index was being bombarded. What does the advancement in the rankings mean that everything on the trade front in India was or is in sync. An increase in rankings has led to an increase in domestic investment, right? When ranking a country in Ease of Doing Business, the World Bank considered 10 key criteria, including time to start a business, necessary permissions, lending arrangements, investor protection, tax levels, foreign trade, insolvency, etc.

However, the World Bank could not cover the entire system of a country to give this ranking. That is, the method of ranking was very limited. In order to rank India, the World Bank took into account the situation in Mumbai and Delhi. Therefore, it cannot be said that Mumbai and Delhi can reflect the whole of India. The World Bank's rankings provided guidance on how to attract foreign investment to a country and make it easier to do business within the country. Based on the recommendations and recommendations of the World Bank which helped the country formulate its trade policy. In the absence of such information, the government often fails to formulate its own policy, which has an impact on investment inflows. India has improved its ranking in Ease of Doing Business in recent years but has not seen much growth in industrial investment. The reason behind this is that when investors come to invest in the country, they invest not in cities like Mumbai and Delhi but in industrial areas which fall in any other state and city of the country. Therefore, investors themselves take into account the local conditions of the area in which they are investing.

In some areas in India, laws are enforced by both the Center and the State. States also have their own rules for local autonomous bodies. States play their role in building permits, water supply systems, electricity connections, pollution control systems, etc. There are many cities where permission for construction activity takes a long time. Not all cities are the same in terms of water supply.

If there is to be an increase in investment behind new projects in India, the Center will have to put a lot of effort into increasing investment if the states do not implement good governance in its establishment. If the country's economy is to grow to પાંચ 5 trillion with the support of foreign capital, it will be necessary to provide comprehensive incentives to attract investment in new projects. Given the changing industrial policies in China, global investors are looking elsewhere for investment.