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Liberalisation and Changing Sources of FDI:
European countries had been major sources of FDI inflows to India until 1990. However, their relative importance declined in the post-liberalisation period. The share of major European countries (which include the UK, Germany, France, Switzerland, Sweden, Italy and Netherlands) came down to 66 per cent in 1990 to just 3 1 per cent in 1997. As Table 19.3 shows that in place ofUK, Mauritius and US has emerged as the most important source of FDI over this period. As per RBI bulletin 2005, Mauritius and US continued to remain the dominant sources of FDI to India. New players like Malaysia have also emerged to the scene as big investing country.
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