Investment in India since Liberalisation
There have been major changes in the investment scenario in India after the changes in economic policies since July 1991. Private investment in manufacturing and infrastructure have begun to be the new engines of growth. The capital markets have seen dramatic changes. Indian companies are raising more and more capital from the markets in India. A new element has been the rising inflow of foreign exchange for investment by foreign and Indian companies as direct and portfolio investments. This paper is an attempt to describe and explain the changes that have taken place as well as the constraints, and together all the factors in one document. Growth is not balanced between sectors. Agriculture, and many geographical areas in India, continue to receive low investment. However the paper does not discuss the work of SEBI, and regulations, since this is by itself a large subject.
National Growth and Macroeconomic Centre