Ten Policy Challenges To Make FDI Work For Development

Developing countries receive more FDI inflows per dollar of gross domestic product than do developed countries. There could be a justification for this as FDI may be attracted into developing countries by factors such as natural resources. A contributing factor for the increased flow of foreign investment in the 1990s has been the extensive reform by host governments, removal of restrictive policies governing FDI flows and permitting free flows of capital. Approval procedures were simplified and rationalized either by removing licensing requirements or keeping it to the bare minimum.The present paper presents Ten challnges to make FDI work for India