|
Abstract:
|
For over a decade, FDI has been seen as the magic wand that will transform India
into an advanced nation with a modem infrastructure. Every government has talked
of taking steps to encourage and expand FDI. But is FDI truly the panacea for the
ills of the Indian economy?Ever since the process of Iiberalization and globalization hi t the Indian shores in
early '90s there were major policy changes made in areas of financial sector, foreign
trade sector, public sector and social sector. These policy changes or the reform s
were initiated to restructure the Indian economy. One question which needs to be answered is how did the world react to the width and depth of Indian reforms?
One such measure is FDI inflows. By and large, the global response has been quite
positive. In the post '90s India has seen dramatic inflow of FDI. In the year 1990
the FDI inflow was US $ 280 million and in 2003 the FDI inflow was US $ 3440
million.Compared to China and other developing economies where does India stand?
This paper focuses on the study on FDI inflows into India and tries to assess where
India stands in terms of attracting FDI in relation to developing nations and
particularly Asia |