Foreign Direct Investment in India Since 1991: Trends, Challenges and Prospects

Foreign Direct enthronement in India since 1991: Trends, Challenges and Prospects M.K. Dutta, Assistant professor (Economics), Department of Humanities and Social Sciences, IIT Guwahati, Assam, India E-mail: mkdutta@iitg.ernet.in & G.K. Sarma, Research scholar (Economics), Department of Humanities and Social Sciences, IIT Guwahati, Assam, India E-mail: g.sarma@iitg.ernet.in (An earlier rendering of the paper was published as Dutta, M.K. and Sarma, G.K. (2008) Foreign Direct Investment in India in the Post Liberalization Period: Trends, Challenges and Prospects, in P. Verma, P.B. Bhaskaran and P.M.Madhani (eds), Globalization Opportunities and Challenges, Wisdom Publications, Delhi, pp. 18-32) Abstract: (With the initiation of new economic policy in 1991 and subsequent reforms process, India has witnessed a change in the flow and take aimion of foreign direct investment (FDI) into the hoidenish. This is chiefly due to the removal of restrictive and regulated practices. Foreign direct investment in India increased from US $ 129 millions in 1991-92 to US $ 40,885 million in March, 2005, an increase of about 316.9 times. However, the demesne is further behind in comparison to some of the developing countries alike(p) China.

In so far as growth track of FDI is c oncerned, there has been quite impressive growth of FDI inflow into the country during this period. However, negative growth rate is noticed during the period 1998-2000 in general due to tholepining share of major investor countries, steep fall of approval by 55.7% in 1998 compared to 1997 and slackening of fresh equity. However, traditionalistic industrial sectors like food processing industries, textiles, etc. which were once important sectors attracting larger FDI, have given way to redbrick industrial sectors like electronics and electrical equipments, etc. In this paper analysis on the factors affecting potentiality and challenges of FDI in the country is discussed and open a room for future discussion.)... If you want to swallow a full essay, order it on our website: Orderessay

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