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A Covid-19 combat policy analysis of foreign direct investment flows on sustainability issues

By: Palit, Swapnamoyee and Mishra, Ronismita.
Material type: materialTypeLabelBookPublisher: Productivity Description: 61(4), Jan-Mar, 2020: p.404-411.Subject(s): COVID-19 pandemic, Foreign direct Investment, FDI In: ProductivitySummary: The uncertainties meted out during crisis conditions like the COVID-19 pandemic-generated economic turmoil amplify the volatility of the financial market, of which the Foreign Direct Investment is a vital component. This necessitates unprecedented strategies and policies to grip the flow within a limit and thus prevent excessive deviation or downturn. However, the present scenario under COVID- 19 for the economy in general and FDI in particular is inconclusive as the policies adopted to stabilise the market may show gradual normalisation and is surrounded with uncertainties. The focus of the present paper is to analyse the strategies and policies adopted by the government to combat the anticipated fluctuations in FDI inflows in the present scenario with an empirical forecast of the FDI flow over the future years. Though the forecast values of FDI over the next 10 years shows a mild increasing trend, showing a silver lining, its tilt towards the lower limit shows the dampened rate of growth of FDI expected on one hand; while on the other, it points to the immense potential which can be tapped with the right strategic policy incentives of the government to ensure the flow of FDI and providing a stature of resilience to it, enabling it to be towards its upper frontier. – Reproduced
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Articles Articles Indian Institute of Public Administration
61(4), Jan-Mar, 2020: p.404-411 Available AR125484

The uncertainties meted out during crisis conditions like the COVID-19 pandemic-generated economic turmoil amplify the volatility of the financial market, of which the Foreign Direct Investment is a vital component. This necessitates unprecedented strategies and policies to grip the flow within a limit and thus prevent excessive deviation or downturn. However, the present scenario under COVID- 19 for the economy in general and FDI in particular is inconclusive as the policies adopted to stabilise the market may show gradual normalisation and is surrounded with uncertainties. The focus of the present paper is to analyse the strategies and policies adopted by the government to combat the anticipated fluctuations in FDI inflows in the present scenario with an empirical forecast of the FDI flow over the future years. Though the forecast values of FDI over the next 10 years shows a mild increasing trend, showing a silver lining, its tilt towards the lower limit shows the dampened rate of growth of FDI expected on one hand; while on the other, it points to the immense potential which can be tapped with the right strategic policy incentives of the government to ensure the flow of FDI and providing a stature of resilience to it, enabling it to be towards its upper frontier. – Reproduced

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