Survey of FDI in India.


With the help of data collected from 152 MNC affiliates operating in India, this chapter concludes that India's performance with respect to FDI remains a mixed bag. A stagnation of the quantum of FDI inflow coexists with the perception that quality of labour and other inputs, as well as the legal- institutional environment relevant to the MNCs, have improved noticeably during the 1990s. The average MNC remains satisfied with growth in labour productivity, revenue and profits, and remains willing to transfer technological resources to the Indian affiliate. At the same time, however, supply of key resources like power remain unreliable, and the extent of spillover effects in terms of both quality of technology and know-how remain uncertain. The mood generally, is one of cautious optimism.


DRC Working Papers, Foreign Direct Investment in Emerging Markets, Centre for New and Emerging Markets, London Business School, No. 6, London, UK, 22 pp.

Survey of FDI in India.

Published 1 January 2003