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Reinventing India’s FDI strategy

Over the past several months, there has been rising concern among policymakers over declining inflows of foreign direct investment (FDI) in India. The World Investment Report, 2011 (WIR) issued by the United Nations Conference on Trade and Development (Unctad) shows that in 2010, when the emerging economies had recovered from the economic downturn, FDI inflows into India were below pre-crisis levels by as much as 42%. Even in the first four months of the calendar 2011 the pick-up in FDI inflows has been slow—they have been almost 9% below the levels recorded in the corresponding period last year.

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