In the aftermath of the economic reforms initiated in 1991, India has received substantial amount of FDI especially in the manufacturing sector in terms of number of new firms, and equity in the existing firms as well. This study analyzes the performances of foreign firms in India in three dimensions: financial, trade and technological. The study adopts aggregate level analysis, for the manufacturing sector, and disaggregate analysis for automobile and automobile ancillaries, drugs and pharmaceutical and textile industries. Using CMIE data, a ratio analysis is carried out to assess the performance of the foreign firms. Starting from 1991 to 2006, the performance indicators have been calculated at an interval of five years. At the aggregate level, the specific warranted effects of FDI associated with the performance of foreign firms have not materialized in any significant manner. Disaggregate level analysis, however, shows that some of the expected beneficial effects from foreign firms could be realized in some sectors.
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Volume (Year): VI (2009) Issue (Month): 1 (February) Pages: 87-97 Download reference. The following formats are available: HTML
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Handle: RePEc:icf:icfjie:v:06:y:2009:i:1:p:87-97
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