Trends of FDI Inflows In India and IPI in Post-Liberalization Period

The Foreign Direct Investment (FDI) has become a main source of foreign capital flow and leading source of external financing for developing economies. Since 1991, due to liberalization of policies towards foreign investment, there was a positive response from capital exporting countries and at the same time India also witnessed an increasing trend of FDI inflows. It is also observed that the liberalization of FDI policies offers opportunities as well as threats for firms, but the importance of FDI extends beyond the financial capital that flows into the firms. The Indian Pharmaceutical Sector is also an interesting and relevant context for several reasons. It is one of the most vibrant knowledge driven industries in India with consistent growth over the past three decades. FDI in pharmaceutical sector in India is also an interesting area for research due to many reasons. Taking into consideration the important of FDI and the significance attached, the present study is carried out to analyse the trends of FDI inflows in India in the Post-Liberalization period with special reference to Indian Pharmaceutical Sector.