Outline the FDI policy pursued by India over different time periods

Question

30 Nov 2023

Answer :

Word Count : 510

India's Foreign Direct Investment (FDI) policy has undergone significant changes over time, reflecting the country's evolving economic goals, global integration efforts, and regulatory reforms. The FDI policy framework in India can be broadly categorized into different time periods, each marked by distinct regulatory changes and strategic shifts:

### Pre-1991: Restricted FDI Regime

Initial Years Post-Independence: India adopted a restrictive FDI policy, emphasizing self-reliance and protectionism. Foreign investment was discouraged, and sectors like defense, telecommunications, and banking were largely closed to FDI.

1960s-1980s: Limited liberalization efforts were made through Industrial Policy Resolutions, allowing FDI in select industries under stringent conditions. Approval processes were complex, and foreign equity participation was often capped at low levels.

### 1991-2000: Economic Liberalization and Structural Reforms

1991 Economic Reforms: India initiated major economic _________ ________ _________ ________ _________ _____ _________ _____ _____.
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