The State continues to remain an important shareholder in listed companies worldwide, especially among emerging economies, which rely increasingly on mixed-ownership models. With the benefit of hindsight and more recent examples, this book provides fresh perspectives on the motivation to list state-owned enterprises (SOEs) and the process it entails. Drawing from the experiences of five economies (People's Republic of China, India, New Zealand, Poland and Turkey), the book concludes that broadened ownership generally has a positive impact on the governance and performance of these companies. However, country practices show that the act of listing cannot guarantee that these companies are completely averse to State interests; and deviations from sound corporate governance practices, as enshrined in the OECD Guidelines on Corporate Governance of SOEs, can in some cases, raise concerns with regards to non-State shareholder rights, commercial orientation, board independence, conflicting State objectives, transparency, disclosure and more.
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India is regularly mentioned as one of the top global destinations for international investment, but it ranks outside the top 10 recipients worldwide. International multinationals cite factors such as retrospective tax legislation and rulings, strict labour laws, slow decision-making at the sub-national level, and poor infrastructure.
This study shows great progress in building a successful policy environment to encourage investment and the resulting acceleration in FDI inflows and economic growth. However, India needs to strengthen and liberalise its regulatory framework and invest more in infrastructure in order to attract increased foreign direct investment, according to the OECD Secretary-General.