Foreign Investments in India

Abstract

This article tries to give a brief outline about the policies and procedures adopted for foreign investments in India since independence.Section I gives the nature of policies and instruments used to contain foreign investment. It also gives an evaluation of the foreign investments during 1948, nature of repatriation during 1986-87. Besides the other policy of export promotion where India has created Free Trade Zones allowing foreign investments full freedom. The impact of such FTZs are also briefly given.Section II gives the brief description of New Economic Policy as announced in July 1991 and the approval procedures adopted. The results during August 91-92 is given.Section III tries to give a comparative position of agencies involved and the various conditions imposed in few of the developing countries. This gives a comparative view between Indian policy and other countries. It highlights the role of foreign investments in the development of Jiangsu rovince in China.Section IV briefly touches on India's direct investment abroad.