Munich Personal RePEc Archive

India's Recent Inward Foreign Direct Investment: An Assessment

KS, Chalapati Rao and Dhar, Biswajit (2018): India's Recent Inward Foreign Direct Investment: An Assessment. Published in: (July 2018)

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Most often the reported FDI flows are accepted unquestioningly and are analysed and interpreted in a simplistic manner in spite of their many nuances. The discovery of some serious limitations and specific features of India’s FDI inflows adds a hitherto little discussed dimension which impacts the understanding of the flows significantly.

The study, India’s Recent Inward Foreign Direct Investment: An Assessment, published in July 2018, vividly explains the various shortcomings and special features of the data using multiple examples and case studies and demonstrates that the annual aggregates cannot provide adequate guidance regarding the year-to-year changes. Nor do they truly reflect capacity creation in the economy. The problem turns out to be more acute at the sectoral level.

The study conveys a strong message that the reporting mechanism and analysis have to be reshaped drastically in order to provide reliable guidance to policymakers and other national and international users. It could provide a template for understating the inflows into developing countries, in general.

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