Abstract
In terms of population (981 million in 1999), India represents the second largest market in the world after China. Healthy growth and a steadily rising GDP (US$420 billion by 1999 and approximately 6 per cent annual growth during 1995–98) will eventually propel India into the top league of nations. If measured in purchasing power parities, India’s national product already ranks fifth in the world, after the United States, Japan, Germany and China. Although per capita GDP is still lower than in China, personal disposable income has risen rapidly since 1991 and will double that of the 1990s over the coming decade. Consumption patterns of middle- and upper-class Indians are also shifting towards those of industrialized countries, particularly in urban areas where pre-1990s family values are giving way to individualism, self-expression and spontaneity (Table 6.1).1
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Notes
For a description of the position of India’s leading business families concerning FDI see also G. Piramal, Business Maharajas, New Delhi, 1996.
G. Piramal, Business Maharajas, 1996.
N. Kumar in J. H. Dunning, Foreign Direct Investment and Governments, 1996, p. 352.
Tata Service. Statistical Outline of India, 1997.
An updated list of industries is included in Annex 6.1. See also Nabhi, Manual for Foreign Collaboration and Investment in India, 1996, 1997, 1998.
A recent example of efforts to decentralize FDI approvals is the power sector, where investments of up to INR15 billion (US$375 million) will be dealt with directly by state authorities, even if the foreign equity level is 100 per cent. See also S. Rangnekar, ‘States Given More Latitude to Attract FDI in Core Sectors’, The Economic Times, 7 May 1998.
Information sourced from officials responsible for FDI promotion. See also Nabhi, Manual for Foreign Collaboration and Investment in India, 1996, pp. 36–39.
V. N. Gupta, ‘Venturing Abroad’, Times of India, 3 February 1996.
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© 2000 Paul Fischer
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Fischer, P. (2000). FDI Policies and Prospects in India. In: Foreign Direct Investment in Russia. Palgrave Macmillan, London. https://doi.org/10.1057/9780333977590_7
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DOI: https://doi.org/10.1057/9780333977590_7
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