Foreign Investments and Collaborations in the 90s is largely due to Policy Liberalization

90s Foreign Investments and Collaborations in the India.

Regarding the investment destination for foreign investments, the foreign investment policy in India. in the 90’s, has given an altogether new image the country.

Flowing into the diversified sectors of India. economy is another significant development Telecommunications and Fuels are the two major sectors accounting for the bulk of foreign investment approve during 1991-96, which in turn accelerates industrialization.

The other major sectors attracting mu& of the foreign investment approved are Transportation industry, food processing industries, chemicals, electrical, equipment’s and service sector.

Also read | The rationale for economic reform.

The diversified foreign investment and collaborations strengthen the diversified industrial structure of Indian economy.

Today India attracts as many as 80 countries across the world, which includes countries from America, Europe, Middle East Africa, Australia and different parts of Asia.

Thus, in the past-reform period, India has been experiencing a significant increase in the magnitude, wider dispersion in terms of origin and direction of foreign investment.

The trend in the actual inflow of foreign direct investments is a more clear reflection on the Government’s foreign investment policy.

Also read | Long-Run Average Cost Curve.

Therefore, the recognition of the role of foreign investment in economic development by India and the recognition of India as an important investment destination by foreign investors will have a long lasting impact on the globalization process of the Indian economy.

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