Trade Essay Reort

Introduction

India is a favourite place for foreign investors. The Government of India has provided some useful information by which investors can be attracted to invest in India and is the third largest growing economy in the world said by Economic Cooperation and Development (OECD). The financial crisis in the global market made a view point of India economy harsh. Dr Man Mohan Singh as the Finance Minister at that time came up with a result to reform the Indian economy. He thus liberalized the Indian economy by ending the licence Raj and by giving an increase to the development of foreign investments in India. Thus, gates for the foreign investors were opened to come and invest in Indian economy. (S V Dikit & A A Shringarpure 2013)

India’s major FDI flow started in the year 1991 and if anyone would have advised that India would be among the most emerging and developed nations and will attract large FDI’s then there would be some changes in the FDI reform and policies. The Governments urgency is to attract the additional FDI in the sectors like telecom, defence and retail. (Quantumamc.com, 2013) Many pessimists have been comparing India 2013 with India in 1991 as far as the country’s financial balance sheet is concerned, but the comparison could be with what India rose from the ashes of financial dis equilibrium in 1991 and now in 2013 becoming a serious contender for its economic growth and also the future growth of India related to FDI depends upon the general elections held in 2014. (Kapadia.S.2013) 

Economic reforms in India

The FDI flow actually started in India in the year 1991 which made a paradigm shift and regulation of foreign investments in India. From 1991 Government came up with some changes, such as registration under MRTP, uphold of the restrictions on use of foreign brand names in the local market as well as removal of the general ceiling of 40% on foreign held. In year 2008 FDI up to 26% was allowed while an added 23% was adhered by...