FDI in India: History, Policy and the Asian Perspective

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 inistrative 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.