The role of India and China is expanding in the global economy. A whole new array of economic and financial issues are emerging which need to be tackled if the current period of growth is to endure. The issues that need attention include how to expand the services sector, especially financial services; how to keep pace with the incredible growth of the manufacturing sector; how to ensure the widest possible diffusion of the huge economic gains seen over the last ten years and how to provide the framework for the development of two-fifths of the human race.

Economic Reforms in India and China: Emerging Issues and Challenges aims at providing the goals, strategies and policies to tackle these issues. It discusses the efforts to address issues like encouraging less successful sectors of the economy that have been complicated by forces of globalization and the ever-changing realities of today's global economy and appraises issues pertaining to economic reforms. The articles explore ways to improve the well-being of the poor, to design effective structures and institutions for poverty reduction and how the reforms, in their economic, political and social dimensions can be used to tackle global developmental issues.

FDI Flows in India and China

FDI flows in India and China

The Concept of Foreign Direct Investment

The term foreign direct investment (FDI) refers to private capital provided by foreign entities for the purpose of acquiring control over production capabilities in the resident economy. This distinguishes FDI from foreign portfolio investments, where the investor does not acquire control. FDI is also different from foreign capital provided on a non-business basis through public bilateral or multilateral development sources. FDI is either directed towards the creation of new production facilities (greenfield investments), or towards the acquisition of existing production facilities (mergers and acquisitions). As far as the form is concerned, FDI is undertaken either through equity capital (direct purchase of stocks and other forms of equity), reinvested earnings ...

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