Open AccessPattern of foreign direct investment in India since 1991
Author(s) -
Mike Gill,
Upinder Sawhney,
Yadvinder Singh
Publication year - 2004
Publication title -
zbornik radova/zbornik radova - geografski institut "jovan cvijić"
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.16
H-Index - 2
eISSN - 1821-2808
pISSN - 0350-7599
DOI - 10.2298/ijgi0453073g
Subject(s) - foreign direct investment , liberalization , business , international economics , international trade , investment (military) , capital (architecture) , economics , market economy , geography , political science , politics , macroeconomics , archaeology , law
The Foreign Direct Investment (FDI) norms in India have been liberalized in a phased manner since 1991. Foreign investment is now coming into the country not only as a source of new technology, but also as a source of capital and managerial skills. Accordingly actual inflow of FDI in India has increased at a compound annual growth rate of 36.3% between 1991 and 2003. The regional pattern of FDI has been marked by strong variations during this period, with more investment going to states with better infrastructure and more progress in the reform process. The hitherto reserve sectors for public investment like power, oil and telecommunications have attracted considerable FDI after liberalization. In terms of the country-wise approvals of FDI, USA accounts for nearly 20% of the share followed by Mauritius, UK and Japan. FDI has come in the form of joint ventures, mergers and acquisitions and green field investments. There have been certain hindrances in the actual inflow of FDI which need to be overcome in the coming years