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India's Evolving Position in the Global Economy

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This chapter charts how India's progress in comprehensive economic reform has contributed to an acceleration in economic growth, noting that further reform is necessary to achieve the government's development goals, such as increasing employment and reducing poverty and inequality. The chapter examines the liberalisation of the regulatory framework for foreign direct investment (FDI) since 1991 and shows how this has led to the country's recent strong performance as both a recipient and a source of FDI. FDI inflows are analysed by motivation, sectoral distribution, geographical source and mode of entry (automatic or approval route). Outflows of FDI are similarly analysed by sector, destination and type (greenfield or M&A), while tracing the evolution of government policy towards outward investment.
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Document Type: Review Article

Publication date: December 1, 2009

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