Will large corporate giants monopolise and take over highly profitable sectors? Will the government have effective control over these companies? How will FDI affect local businesses? These are frequently asked questions and FDI in India is a comprehensive study that attempts to answer them.
The volume begins by tracing the evolution of India’s foreign investment policy in the 1980s to developments in the 2000s. This is contrasted with a study of the policy decisions of Asian countries that India competes with in the global stage—China, Thailand, Malaysia and Singapore. In looking at the Indian case, the book highlights the changes in industrial productivity after liberalisation and also presents a comparison of the performance of domestic- and foreign-owned firms.
Drawing on these analyses the book recommends policy changes for the government to consider. Breaking the artificial distinction between FDI and trade, it implores the government to reduce administrative obstacles in developing synergies between the two. The authors argue that in bringing greater competition and technology spinoffs for the local industry, FDI is likely to benefit the economy.
By describing and providing econometric substantiation of spillovers due to the investment, FDI in India argues for wider engagement with FDI. This book is lucid in its style and will be useful for students and scholars of economics, commerce and development studies. It will also be of interest to those keen to understand foreign investment and the challenges it poses in the Indian context.
Manoj Pant is Professor, Centre for International Trade and Development, School of International Studies, JNU.
Deepika Srivastava is probationer, Indian Economics Service, and former Assistant Professor, Lady Shriram College, Delhi University.
List of Tables and Figures
List of Abbreviations
2. FDI Policies in Asia
3. India’s Foreign Investment Policy
4. India’s Foreign Investment Policy after 1995
5. A Comparison of Domestic and Foreign Firms
6. Export Orientation of FDI in India’s Manufacturing Sector
7. FDI and Spillovers
8. Trade and FDI
9. Conclusion and Policy Recommendations
Annexure A Sector Specific Conditions on FDI
Annexure B List of Industries