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Foreign Direct Investment, Resource Availability and Efficiency in India

In: Foreign Investment in Developing Countries

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  • Veena Keshav Pailwar

Abstract

The balance of payment crisis of 1991 necessitated the implemention of various liberalization and structural reform measures in India. Since then, India has followed a policy of opening up of the economy to FDI and other types of capital flows. Not only has the total flow of private foreign capital increased sharply in the post-liberalized years but the composition of these flows has also shifted in favour of FDI. Data available from the Economic Survey of India (2002–3) indicates that FDI flows were 1.1 per cent of total capital inflows in 1990–1; this share had increased to 31.4 per cent in 2001-2. Various issues of the World Investment Report also show that India’s share in total FDI flows moving to the developing countries has significantly improved.

Suggested Citation

  • Veena Keshav Pailwar, 2004. "Foreign Direct Investment, Resource Availability and Efficiency in India," Palgrave Macmillan Books, in: Harbhajan S. Kehal (ed.), Foreign Investment in Developing Countries, chapter 6, pages 112-133, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-55441-2_7
    DOI: 10.1057/9780230554412_7
    as

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