Liberalisation and changing sources of fdi, Macroeconomics

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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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