India, one of the fastest-growing countries in the world, requires huge resources to fulfil its investment needs. As domestic savings alone cannot complete this demand, foreign investment flows have increasingly played an important role in India's growth story. This book provides a comprehensive account of the changes in the nature and components of foreign investment from the pre-colonial period to present times. It presents a supply-side analysis of both foreign direct investment and foreign portfolio investment, especially in the context of economic reforms. The book covers a wide range of topics such as the impact of foreign investment inflows in bridging the savings and foreign exchange gaps, India's emergence as a big source of FDI that is being directed to developing as well as some developed countries, a comparative analysis of the FDI scenario between India and China, the policy dilemma of maintaining a pro-investment policy while safeguarding the domestic sector, and the impact of financial crises on inflows and outflows.
