INDIA: BANE OF POLICY UNCERTAINTY – NOW IN FINANCIAL SERVICES

Published On: 01/05/2014

Practice Area: Banking & Finance

Authors:

Foreign direct investments drive the growth of financial markets of a country. While interest rate regulations and other financial indicators are essential ingredients for increasing the volume of foreign direct investment in a country, the legal regulatory regime also provides an impetus to the inflow of foreign investments. Ambiguity in the legal regulatory framework can act as a deterrent in a country's ability to attract foreign investment. Therefore, certainty and predictability in law can work towards strengthening the stability of foreign investment inflows in a country.