Amidst stiff resistance from most actors, the Indian government Essay

Amidst stiff resistance from most actors, the Indian government approved Foreign Direct Investment in retail last year. Discuss how this will impact the development in the country – Essay Example well as implementation of pioneering technological advancements and internationalisation have compelled the respective governments of dissimilar nations to formulate along with execute effectual policies for progressing the economies (Hirst et al., 2009). With regard to this aspect, it has been viewed that the government of India felt the urgent need of progressing its economy through approving Foreign Direct Investment (FDI) in recent years particularly in the retail sector. By taking into consideration the aforementioned decisive factors, the government of India has decided to implement such a significant approach with the sole motive of developing its economy at large. In this similar concern, the Indian government previously adopted this significant approach but failed to implement owing to the reason of facing stiff resistance from both the allies and the opposition parties by a greater level. The government strongly believes that the introduction and the implementation of this important approach i.e. FDI would certainly help in advancing Indian economy by a significant extent (Nexia International, n.d.). FDI is fundamentally regarded as an invaluable source of private capital especially for developing nations which plays a decisive role in making deliberate efforts towards both national along with international development. Generally, FDI is typically described as a cross-border investment which is made by an organisation based in one particular nation into a business entity based in another country with the motive of strengthening its financial position by a greater level (Peng, 2009). The approach of FDI is principally regarded to be an imperative tool for the financial development of any particular nation through standardising advanced technologies, effectively utilising valuable resources and developing innovative techniques (Moghe, 2008). It has been apparently observed that the governments of various countries desire to adopt and execute this