Sources: India plans new law to protect foreign investment - Reuters
|Citing two Indian government officials with direct knowledge of the matter, Reuters reports on Thursday that India is considering drafting a new law to safeguard foreign investment that would aim to attract more capital from overseas.
This effort by India is seen boosting dwindling domestic growth.
The official said: “The idea is to attract and promote foreign investment, but a major issue for investors is the enforcement of contracts and speedy dispute resolution.”
“The draft proposal is aimed at diffusing investor mistrust around the sanctity of agreements, which has worsened recently after some state governments decided to review approved projects, or threatened to cancel contracts,” the officials added.
Despite the pro-growth initiative by the government mentioned above, the Indian rupee fails to benefit, as the country’s declining exports growth weighed. USD/INR extends its recovery from five-week lows of 70.682 to now trade near 70.85, up 0.21% on the day.
India's exports declined 1.8% in December to $27.36 billion, registering fifth straight monthly fall amid the general economic sluggishness and weak domestic demand.
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