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Abstract

India, with the second largest population in the world, offers huge business opportunities for investors. The ''protectionist'' government policies held back the pace of economic growth of the country until the true economic reforms started in 1991. Although Indian foreign direct investment (FDI) increased from US$129 million in 1991-1992 to US$3,449 million in 2001-2002, it did not match the FDI growth rate of other developing nations, especially China. The case offers insights into the major factors affecting FDI inflows until 2003. The case allows a scope for discussion on how the policy reforms had started to build up confidence among foreign investors in India.
Location:
Other setting(s):
2004

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Abstract

India, with the second largest population in the world, offers huge business opportunities for investors. The ''protectionist'' government policies held back the pace of economic growth of the country until the true economic reforms started in 1991. Although Indian foreign direct investment (FDI) increased from US$129 million in 1991-1992 to US$3,449 million in 2001-2002, it did not match the FDI growth rate of other developing nations, especially China. The case offers insights into the major factors affecting FDI inflows until 2003. The case allows a scope for discussion on how the policy reforms had started to build up confidence among foreign investors in India.

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Location:
Other setting(s):
2004

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