Template-type: ReDIF-Paper 1.0
Author-Name: Kumar, Nagesh
Author-Email:
Author-Workplace-Name: United Nations University, Institute for New Technologies
Title: Industrialization, Liberalization and Two Way Flows of Foreign Direct Investment: The Case of India
Abstract: This paper analyses the evolution of India's FDI position during the
	 post-independence period in comparison with government policy and levels of
	 industrialization and development. Since independence, India has pursued a strategy
	 of industrialization with active governmental intervention. Domestic enterprises
	 accumulated considerable capability in the process of industrialization, which has
	 influenced not only the pattern of inward FDI, but has also led to Indian
	 investments abroad. Changes in government policy have also had an important bearing
	 on India's FDI position. The Indian government's attitude towards foreign
	 investments has evolved over the post-independence period in four distinct phases:
	 gradual liberalization from the establishment of independence till the late 1960s;
	 a more selective attitude from the late 1960s throughout the 1970s; a certain
	 liberalization of policy in the 1980s; and further liberalization of the policy
	 regime with respect to both inward and outward FDI as a part of the structural
	 adjustment program since 1991. The analytical frameworks provided by Dunning and
	 Ozawa that posit the pattern of a country's FDI, delineating both inward and
	 outward changes with the structural transformation of the economy, are kept in the
	 background of the discussion.
Keywords: Foreign Investment, Direct Investment, Government Policy, India
Series: Discussion Paper
Creation-Date: 1995
Number: 03
File-URL: http://www.intech.unu.edu/publications/discussion-papers/9504.pdf
File-Format:application/pdf
File-Size: 103 Kb
Handle: RePEc:unm:unuint:199504