The Stimulus FDI has Provided in Harnessing Indias Economic Potential free essay sample

An in-depth analysis of the role FDI (foreign direct investment) has played within the Indian economy. This paper analyzes the role Foreign Direct Investment has played within the Indian economy. It traces FDIs history in India as well as the socio-economic and geo-political factors which have led to the inflow of FDI. The paper studies the success and failures within industry- specific areas such as power, telecom, IT and BPO. It also deals with Indias struggle through policies of protectionism and repudiation to large scale reforms, divestments and privatization. The research is somewhat critical of the use of FDI but looks at all aspects of FDI and its role within the Indian economy. Table of Contents Opening the Indian Economy and the Magnitude of FDI Introduction FDI and Comments on Governmental Policy Formulation for Promotion of MNE s Imperative of Attracting Export-oriented FDI through MNE s A Professional Approach to Promotion The Socio-Economic and Geo-political Factors Leading to Liberalization- based Policies in India Evolution of Government Policy in Conjunction with Promotion of FDI through MNEs Evolution of Government policy: 1948 ? 1967 The Restrictive Phase: 1968-1979 The Opening up of the 1980s Structural Adjustment and Globalization: 1990s Government Policy and Trends in Foreign Investments and Collaboration Inflows of FDI and an Analysis of Historic Comparative Advantages as Opposed to Knowledge Based Growth FDI and Pitfalls Related to Inflow Historic Comparative Advantages Lost Ideologies in Globalized Paradise Case Power Sector Knowledge Based Growth Case: Telecom Scandal The IT and BPO sectors Case Examples Western Demand and Dupplies Curves Comments Indian Liberalization Targets vs. We will write a custom essay sample on The Stimulus FDI has Provided in Harnessing Indias Economic Potential or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page FDI policy Inflows Foreign Investment Policy Magnitude of FDI Inflows Steps India Can Take to Accelerate Increases in FDI Inflows National Promotion as Brand for Inflow of FDI Focus on Tertiary Service Sector Rural Cottage and Agro-based Businesses for Large-scale, Economic Production for Exports Bureacracy Reduce Privitzation Acceleration Investment in Domestic Infrastructure and Projects Conclusion and Recommendations Limitations and Future Research Conclusions from Investigation Recommendations Personal Review Various other policies have been laid out since and have been put into effect as an attempt on the part of the Indian government to firmly safeguard MNE s business interests and promote a competitive environment. Since 1991, India has received a number of delegations of potential foreign investors and the most recent one which is worth mentioning is Mr Bill Clintons delegation to India which has literally brought about huge FII (Foreign Institutional Investments) up to an estimated $4 dollars within a week. The US has also provided MNE s to borrow from the EXIM and World banks to further invest in India up to the tune of $750 Million. An indicator of the changed Indian environment is the fact that two giants that left the country following restrictions placed on them under FERA, IBM and Coca-Cola, have both recently come back. IBM has set up a joint venture with the TATA group of companies and Coca-Cola has taken over the local soft drink maker manufacturer, Parle.