These are dark times for Indian economy with a lot of things going wrong. Slow growth, current account deficit and plunging rupee - all point out to the government's apathy and policy paralysis over years. And even now, the government instead of acting to minimize the damage is just making it worse. As per a leading financial daily, Nokia believes India is the least favourable market to operate. In fact, is thinking to quit India and shift its operations to China. The issue stems from lack of clarity on tax policies. The same may lead to hefty penalties against the firm. It is not a small issue related to just one firm. A lot of other MNCs such as Cadbury and Vodafone have had similar experiences in India. Nokia's reaction should be taken as feedback about how foreign companies feel about operating in the country. Lack of transparency and policy paralysis is the reason why foreign companies are not stepping in despite relaxing the FDI limits. India already stands vulnerable and is hardly in a position to take further blows. When so much seems to be going wrong, we cannot afford to annoy and lose the few MNCs that are present in the country. Hope the policymakers are listening.
Sunday, August 25, 2013
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