General Electric in India
Recent economic figures point to the tremendous growth of India as the world's popular investment hub. Foreign direct investments (FDIs) in the country have depicted a surge as investors seek opportunities in the second populous nation in the world (Mishra & Shaopeng, 2013). The country occurs as a close competitor to China, as the preferred investment hub globally. Since independence, India upholds democracy in rule and governance. In the 1970s, India occurred as a preferred hub for multinationals such as IBM. The nation is popular for providing a favorable environment for multinationals to thrive. In this paper, we analyze some macro and micro economic factors that affect the way of doing business for General Electric in India.
Legal/Political factors
Effect of Common law on GE
Historically, India has grown as one of the most preferred investment hubs for multinationals. The presence of General Electric (GE) in India dates back to 1902. GE has managed to stay afloat in the market through various projects in energy, financial services, healthcare, and transportation. India's policy on invitation and facilitation of FDIs takes either the government approval route of the automatic route. The automatic route does not need prior approval whereas governmental approval route requires approval from the Foreign Investment Promotional Board. The presence of General Electric depicts the automatic route as hundred percent ownership traces to the U.S. Law on FDIs prohibits investment in sectors of atomic energy, agriculture, betting, gambling, and lottery. GE...
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