Indian Government Taxation Model and Foreign Investment Opportunities

The research paper is an effort to understand the current scenario of foreign investment in India along with various tax incentives available and its bearing on the investment decisions. In this paper we have tried to evaluate the foreign investment trend in India through understanding the relationship between the independent and dependent variables of foreign direct investment using regression. For the purpose of our study we have considered the tax rates and proportionate investments made in various sectors during the past three years. The variables considered include tax policy, infrastructure, and size of the market, population and foreign direct investment inflow. The results of the research predicts that India is one of the most successful place in terms of foreign investments being made and would soon emerge to a global leader in terms of favorable investment decision.