Foreign Direct Investment : A New Perspective on India
Contents: Preface. 1. Introductory background and Theoretical Framework of the study. 2. FDI: Theoretical and Policy Framework. 3. Emerging Trends of FDI in India: Pre and Post Liberalization Analysis. 4. Post Liberalization Evaluation of Indian Insurance Sector. 5. FDI Inflows in Indian Insurance sector: A Post Liberalized Analysis. 6. Conclusions, Recommendations and Suggestions. Annexures. Bibliography. Index.
Foreign Direct Investment (FDI) is a subject of topical interest. Countries of the world particularly developing countries are competing with each other to attract maximum foreign capital to boost their domestic rate of investment and also acquire new technology and managerial skills. However, FDI is not an unmixed blessing. Developing countries have to be very careful while deciding the magnitude, pattern and conditions of private foreign investment.
Prior to the economic reforms in India, FDI was discouraged by imposing severe limits on equity holdings by foreigners and restricting FDI to the productions of only a few reserved items. It was in July 1991, when the initial policy stimulus to FDI in India took place. In recent years, the Indian government has started the second generation reforms under which various measures like freedom of location, choice to technology, repatriation of capital and investment etc. have been taken to further facilitate and broaden to base of FDI in India. Therefore, the rate at which FDI has increased during the post-liberalization period is a clear indication that India is fast emerging as an attractive destination for foreign investment.
Although conflicting views have been expressed by proponents and opponents of FDI with regard to attracting FDI. But, as a matter of fact, FDI is contemplated the book of the globalization. In the present era of LPG, no individual country can conceive the idea of all-around development without the judicious mix of foreign capital particularly FDI.
In the light of above, this book is devoted to a descriptive and analytical study of FDI trends and policies in India especially during the post-liberalization period. This book also examines the impact of economic reforms on FDI attractiveness and FDI inflows in India. Besides, this study is novel as it analyses the pattern, potential drivers and implications of FDI in the Indian insurance sector.
