Evaluation of Foreign Direct Investment in India and China: A Comparative Study
Keywords:
Foreign Direct Investment, foreign policy framework, economic growth, emerging markets, India Vs ChinaAbstract
From time immemorial India has attracted the attention of the globe. While, China embarked upon economic reforms in the year 1978, Economic liberalisation was unveiled in India by Dr Manmohan Singh in 1991. Both the countries have pursued diverse policies and strategies under different political regimes. The success story of China is a matter of deliberation amongst policy planners and academicians. China’s export-oriented growth has been fuelled by massive FDI inflow. At this point in time an analysis of FDI policy pursued by both nations and there and their success story is significant. This paper analysed the role of policies, planning, infrastructure and the operating environment for mobilizing funds from foreign investors. A comparative evaluation of foreign direct investment policy pursued by both Nations and their respective performance has been attempted in this paper.
Social and economic indicators for both the Nations have been compared. Salient features of India’s FDI policy have been briefed. Review of China’s FDI policy has been done. Performance of both countries has been evaluated in terms of volume, sources and sectoral distribution of inflows.
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