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

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Prospects for FDI and Multinational Activity in the 90s

This paper discusses the implications of trends and patterns in foreign direct investment and-of the policy and structural changes in India for foreign direct investment in India in the 90s. It is argued that while the FDI inflow into India is likely to increase, it would never be anywhere near the $ 4 billion or so per year that is anticipated by the government and hoped for by business. By contrast, international subcontracting by foreign firms could play a major role in manufactured export growth. This is an aspect which, while vitally important for Indian manufacturing, has attractea little attention in terms of policy.

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