India became a prosperous nation during 1700s and articulated its economic status
in the major areas of food and crop production, textiles, glass etc increasing
per capita income to a satisfactory level. However, the year 1757 came with the
British rule and has the control in developing and formulating new business
policies causing troubles for local farmers and craftsmen. The policy was more
in terms of imports rather than exports and huge amount of money was forwarded
to different regions specifically Britain.
It's only after Indian Independence when various measures
were taken and Indian become founding member of various trade blocs the
commission was set up in India to plane further course of action.
We should not forget the 15th century when the
first European colonists had started visiting the shores of India. In the early 16th century, Portuguese rule was established on the West
coast of India at Goa; however, the Portuguese did not succeed in moving deep
into the country. It was the British who began with the battle of Plassey in
1757and moved forward. Then came many changes in the history and lot of
development also took place, one of the example was the setting up of Indian
railways. Year 1920 has made India withstand the fourth largest railway network
in the world and with the history of 60 years of construction. The system by
the end of year 1900 provided India with social savings of 9% of India's national income.
Needless to mention that all the engineering skills,
knowledge, setting up of universities etc were taking place and moving India towards the road of development. Investment in terms of various subjects was coming
in and yes exports were also increasing. For instance, due to the shortage of
skilled manpower raw cotton was used to send to Britain and finished goods come
back. Infrastructure development was the priority in the 1900 era. These
examples clearly states that even in the beginning of the 19th century
globalization were taking place, however, in a less conducive manner.
Current Investment scenario in India: Inward and Outward
Globalization and Foreign Direct Investment (FDI) is playing
an important role in the development of developed, developing as well as
underdeveloped economies. The reasons are simple like introduction of new
products, new skills, easy approachable markets and modern technology to the
host countries. Every country around the world is playing a important role in
the encouragement of foreign and overseas investors and their investments. India is being ranked as the second most favored destination for foreign investments after China by showing a growth year after year.
End of fiscal year 2008-09 Indian received FDI inflows
totaling approximately USD$11.2 billion with Mauritius as the highest
contributor. Sectors like services including financial and non-financial
services attracted the maximum amount of US$6.1 billion. As per the figures
released by Department of Industrial Policy and Promotion (FDI) inflows during
2008-09 (from April 2008 to March 2009) stood at approx. US$ 27.3 billion and
inflows for the last quarter alone of 2008-09 stood at approx. US$ 6.2 billion.
Government on time to time has taken various initiatives to liberalize FDI
policies so as to receive maximum investment keeping in mind that domestic
products should not get blemished. The FDI outflow from India has also been increased and expected to reach to very high mark.
As per the figures released by Reserve Bank of India the
total outward investment from India, excluding that were made by individuals
and banks, rose 29.6 per cent to US$17.4 billion in 2007-08. The second highest
foreign employer in the UK is India after the US, according to the 2009 UK inward foreign direct investment (FDI) official data. With various mergers and
acquisitions Indian businessmen are expanding their horizons and creating a
mark in the International arena. Companies like Apollo Tyres, Eveready
Industries etc are among some of the companies which are investing abroad.
Indian banks, financial institutions are amongst them also to invest abroad.
Government as in terms of increasing FDI inflow has taken various initiatives
for outflow as well. Like raising the overall limit for overseas investment by
domestic mutual funds from US$5 billion to US$7 billion, increasing the limit
of remittance and allowing mutual funds to make an aggregate investment etc.
