The determinants of US foreign investment in India: Implications and policy issues

Document Type

Article

Publication Date

1-1-1998

Abstract

The purpose of this study is to determine the factors that affect United States foreign direct investment (FDI) in India. It also analyzes the current trend of U.S. FDI towards this country, together with its implication to the economy of India. Finally, the economic reforms started in 1991 by the Congress Government and its impact on foreign investment is also discussed. It is observed that U.S. investment in India have increased since the 1980s. Even though historically India closely aligned itself more with the former Soviet Union than the U.S., many investors including in the U.S. are refocusing on India now. This is because many see India as a giant economy ready to flourish. Different multiple regression analyses have been used to obtain the economic results of this study. A comprehensive model is tested for economic variables data from 1962 to 1994. © MCB UP Limited 1998.

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