This is our endeavor to brief the readers about FDI trends in the emerging markets. This issue tries to cover India in specific.

India adopted new economic policy in 1991. Dr. Manmohan Singh, the then finance minister of India, announced to open up the Indian economy to the foreign players and harbingered the policy of globalization. Since then, Indian economy has been on the growth path. The new policy brings competitiveness among different states of India. The states started taking responsibility on attracting foreign investment to their respective states. The GDP growth rate which was 0.8% in 1991-92 grew up to 5.3% in 1992-93 and the growth rate has been continuously on the right track. Before 1991, Indian economy had to depend on the US and NRIs for capital. Due to the short-term borrowing from NRIs, Indian economy was in crisis. The ratio of capital formation to saving was very low.

Adoption of new policy gave an opportunity to the Indian economy to avoid such economic crisis and to benefit from the foreign investments. In terms of Foreign Direct Investment (FDI), a country can get huge amount of capital along with managerial skills and technology, and access to foreign market. The entire world has recognized the importance of FDI in the economic development process.

Portfolio Organizer Magazine, FDI Markets, Indian Economy, Globalization, Foreign Direct Investment, FDI, Managerial Skills, Economic Development Process, Liberalized Policy, Value Added Tax, VAT, Economic Reform, Indian Market, Employment Creation Sector.