The Pattern of Inbound Foreign Direct Investment into India

Aparna Sawhney and R. Rastogi ()
Additional contact information
R. Rastogi: Symbiosis Centre for Management Studies (Constituent of Symbiosis International (Deemed) University)

Chapter Chapter 8 in Trade, Investment and Economic Growth, 2021, pp 121-131 from Springer

Abstract: Abstract Encouraging foreign direct investment (FDI) has been an important development strategy for a capital-scarce economy like India. Systematic reforms and investment liberalization policies adopted since 1991 have substantially increased FDI in the manufacturing industry. The sustained growth of FDI in manufacturing sector and particularly in polluting manufacturing industries raises a question as to what factors have attracted FDI in Indian industries from high-income countries. We address this question by first examining the composition of the FDI inflow by industry-specific characteristics (at disaggregated 3-digit industry classification) of the Indian manufacturing. Second, we analyze the characteristics of high-income source countries determining the FDI in different Indian industries, from 2000 through 2014. We find that FDI inflows have significantly been in capital-intensive industries; within the polluting industries, FDI has been mostly in export-oriented industries. Our source-country analysis reveals that polluting industries have attracted FDI from capital-abundant, large countries and from those with stringent environmental regulations.

Keywords: Foreign direct investment inflows; Manufacturing industries; India; Industry characteristics; Source-country characteristics; F14; F18; F21 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-33-6973-3_8

Ordering information: This item can be ordered from
http://www.springer.com/9789813369733

DOI: 10.1007/978-981-33-6973-3_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().