2010 Reports

Inward FDI in India and its policy context

Satyanand, Premila Nazareth; Raghavendran, Pramila

A minor global FDI player in 2000, India is now the world's thirteenth largest FDI host country. With 2008 inflows of US$ 42 billion and 2009 inflows of US$ 27 billion, it is also a global top three preferred investment destination. Notable liberalizations in FDI policy and in several economic sectors, a globally competitive workforce, and rapid GDP and market growth are the main drivers of foreign investment in India. Yet, equity caps limit the size of potential new inflows, while national security concerns might prompt more oversight of FDI approval processes.