Political Risks Faced by Foreign Investors in India

This report delves into the multifaceted realm of political risk within the framework of international business, with a specific focus on the Indian context. The study commences with a comprehensive literature review, drawing upon the insights of various scholars to define and elucidate the concept of political risk, encompassing governmental actions that impede business transactions and investments. The main body of the report then shifts its focus to India, analyzing the specific challenges faced by foreign direct investors in the face of political instability, regulatory hurdles, and corruption. The report also explores the effects of corruption and intellectual property rights on international business. Furthermore, the report provides recommendations on how to mitigate these risks, including strategies such as diversification, risk sharing, and adherence to ethical business practices. This report provides a comprehensive overview of political risk in India and offers practical recommendations for businesses operating in the global market.