![]() The large consumer base has attracted many global retailers and domestic corporates to invest in modern retail in India. ![]() In the post-liberalisation period, with increase in GDP, rising per capita income and proliferation of brands, there have been changes in the purchase behaviour of Indian consumers. As a result, the Indian government formulated a brand-based retail FDI policy in 2006. The government also wants to develop India as an outsourcing hub for foreign retailers the presence of foreign retailers in the domestic market can increase sourcing from India. The Indian government has realised that growing consumerism and brand-consciousness can help sustain high economic growth. Much of the OFDI originating from high-tech manufacturing sectors is destined to advanced countries whereas OFDI from medium tech industries is focused largely on developing countries. But in the manufacturing sector OFDI, a clear distinction can be drawn on destination, depending on whether the investors belong to high-tech or medium-tech manufacturing sectors. In services of various levels of knowledge intensity – knowledge intensive services and less knowledge intensive services – developing countries outpace developed countries as destination countries. Developing countries are the leading destination for services OFDI. Rising OFDI from India is characterised by growing significance of services in OFDI – it has overtaken manufacturing sector as major OFDI originating sector. It is found that liberalisation of OFDI by doing away with blanket ceiling and linking outward investment to net worth of the investors have majorly boosted OFDI from India. It also aims to capture major trends in India’s OFDI in the last one decade. This paper aims to map the changing policies on OFDI since 1960s. ![]() ![]() The policy regime governing India’s outward FDI (OFDI) has undergone major changes in the last one and a half decades period. ![]()
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