Foreign Direct Investment: Global and Indian Aspects

Foreign Direct Investment (FDI) is a subject of topical interest. Countries of the world, particularly developing economies, are vying with each other to attract foreign capital to boost their domestic rates of investment and also to acquire new technology and managerial skills. Intense competition is taking place among the fund-starved less developed countries to lure foreign investors by offering repatriation facilities, tax concessions and other incentives. However, FDI is not an unmixed blessing. Governments in developing countries have to be very careful while deciding the magnitude, pattern and conditions of private foreign investment. Though India has one of the most transparent and liberal FDI regimes among the developing countries have to be very careful while deciding the magnitude, pattern and conditions of private foreign investment. Though India has on of the most transparent and liberal FDI regimes among the developing countries with strong macro—economic fundaments, its share in FDI inflows is dismally low. The country still suffers from weakness and constraints, in terms of policy and regulatory framework, which restrict the inflow of FDI. This book provides glimpses of the patterns, issues ands policies involved in FDI flows at the global level and in India.