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

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Emerging Trends

Sector and Cluster Effects of FDI in R&D in India

India has been attracting foreign direct investment in research and development over the past decade. This article provides a quantitative assessment of the FDI in flow for R&D from 2003 to 2009, and the sector and cluster preferences of multinational corporations investing in R&D in India. FDI in R&D is limited to the information technology, pharma/ biotechnology, and automotive sectors. This infl ow of FDI has not caused growth, but rather has chased growth-oriented sectors.

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