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A Study on Foreign Investment in India since 1990s

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  • Duk Ahm Kong
  • S. Sakthivel

Abstract

Prior to the 1990s, the investment policy regime in India was fairly restrictive in the sense foreign firms were allowed to have equity only to the extent of 40 percent with few exemptions. Large-scale liberalization leading to trade and investment openness has been one of the key issue in the economic reforms carried out in India since the early 1990s. Now Twelve years have past since the openness of India Economy. It will be proper for the occasion to analyse the effect on India Economy and changing of the foreign investment patterns & trends since the openness. The objectives of this paper are as follows. Firstly, to analyse the trend and pattern of foreign investment in the country in the pre and post liberalization period. Secondly, to examine the spread/concentration of foreign investment in different regions of India. Thirdly, to identify the major source of countries from which foreign investment flow into India. Finally, to assess the vital sectors that attracts foreign investment into India. Regional Concentration of Foreign Investment Across States in India, source-wise break up of Foreign Investment Inflows, Sector wise Foreign Investment flows, trends and patterns since the 1990s will be analyse in this paper.

Suggested Citation

  • Duk Ahm Kong & S. Sakthivel, 2004. "A Study on Foreign Investment in India since 1990s," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 7(2), pages 21-40, September.
    • Handle: RePEc:sae:intare:v:7:y:2004:i:2:p:21-40
    DOI: 10.1177/223386590400700202
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