ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Who Is Afraid of Foreign Firms-Current Trends in FDI in India

This paper examines whether foreign direct investment (FDI) is assuming a dimension which can threaten Indian indusrty. Data on FDI approvals in the post liberalisation period have been compared with data on capital formation by local industry during the same period. From an analysis of the current level of dominance by foreign firms, the likely impact of fresh FDI has been analysed and assessed at the sectoral level. The findings are likely to Iiave relevance at least over the next five years.

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