FDI has become a catchphrase since 1991 in Indias economic development policy. However, FDI comes with the threat of crowding-out of the domestic investment. Owing to MNCs financial and technical muscle, there is a strong possibility of washing out weak domestic industries. Also most MNCs adopt Resource-seeking and Market-seeking approach to seize domestic market and employ cheap physical as well as human resources in the host country, which do not necessarily promote internal growth of the economy. Similarly, it would be naive to make any quick remark on FDIs implication on the host economy...
FDI has become a catchphrase since 1991 in Indias economic development policy. However, FDI comes with the threat of crowding-out of the domestic inve...