Team Blitz India
NEW DELHI: India’s GDP has crossed USD 3.5 trillion in 2022 and will be the fastest-growing G20 economy over the next few years, but reform and policy barriers could hamper investment, Moody’s said.
In a research report, published in leading dailies on May 24, the US-based rating agency said bureaucracy could slow approval processes in obtaining licences and setting up businesses, prolonging project gestation.
“India’s higher bureaucracy in decision-making will reduce its attractiveness as a destination for foreign direct investment (FDI), especially when competing with other developing economies in the region, such as Indonesia and Vietnam,” Moody’s Investors Service said.
Ongoing efforts by India’s government to reduce corruption, formalize economic activity, and bolster tax collection and administration are encouraging, although there are increasing risks to the efficacy of these efforts, it said.
