Vol. 3, Issue 5, Part K (2017)

Abstract
India is one of the fastest growing economies of the world. India has retained its third position as the most preferred investment destination after US and China as per UNCTAD list of Investment Destinations and it could attract higher Foreign Direct Investment in the years to come. The Inherent advantages of the country along with the government initiatives taken from time to time are the main reasons of increasing foreign investments into the country. The Budget 2017 has set the momentum of increasing FDI and FPI inflows. The various government initiatives like, increasing FDI limits, Make in India campaign, Implementation of Goods and Service Tax, improving ease of doing business, increased tax holidays, reducing corporate tax rates, abolition of capital gain tax on conversion of preference to equity shares and abolition of Foreign Investment Promotion Board will drive the investment behaviour of foreigners in India. The major impediments to the growing investments in India are corruption, infrastructure, red-tapism and tedious rules and regulations that are to be followed. The government has been working upon reducing and eliminating all the barriers and facilitate smooth flow of investments into India.