Evaluative analysis on resurgence of FDI flow in India and China: Issues and challenges

The recent financial crisis, and the subsequent resurgence, has proven that globalisation is well and truly here to stay. No single economy, whether big or small, developing or developed, could escape from the impact of these economic fluctuations. According to UNCTAD estimates global FDI flows are expected to touch US$ 1.4 trillion in 2010, finally registering an annual growth after a gap of two years.

As the global economy slowly limps back to normalcy experts across the world are of the opinion that the BRIC nations would emerge as the investment destination of choice over the coming years. The paper shall attempt to present an evaluative analysis on the ability of a country, specifically India and China, to attract FDI inflows and the extent to which it is influenced by the ease of doing business there and also the pace at which reforms are implemented.