Will large corporate giants monopolise and take over highly profitable sectors?
Will the government have effective control over these companies?
How will FDI affect local businesses?
This bookanswers these questions central to any discussion on Foreign Direct Investment (FDI). The volume provides a detailed presentation on the evolution of India’s foreign investment policy in the 1980s to developments in the 2000s. This is contrasted with a study of the policy decisions of Asian countries that India competes with on the global stage—China, Thailand, Malaysia and Singapore. Through a comparison of domestic and foreign-owned firms, FDI in India also studies the way FDI indirectly impacts the productivity of domestic firms.
The authors break the artificial distinction between FDI and trade, and suggest that the government reduces administrative obstacles to develop synergies between the two. They argue that by bringing greater competition and technology spinoffs to local industry, FDI is likely to benefit the economy.
Lucidly written and backed by econometric analyses, this book is a must read for students and scholars of economics and commerce.
Manoj Pant is Professor, Centre for International Trade and Development, School of International Studies, JNU, New Delhi.
Deepika Srivastava is Assistant Director, Research and Analysis Division, Ministry of Corporate Affairs, Government of India.
List of Tables and Figures
List of Abbreviations
-FDI Policies in Asia
-India’s Foreign Investment Policy
-India’s Foreign Investment Policy after 1995
-A Comparison of Domestic and Foreign Firms
-Export Orientation of FDI in India’s Manufacturing Sector
-FDI and Spillovers
-Trade and FDI
Conclusion and Policy Recommendations
Annexure A Sector Specific Conditions on FDI
Annexure B List of Industries