PART 8| Unit 20| Collab policy | Foreign investment and collaboration |MCO 4 MCOM 2nd year IGNOU

Foreign capital is required for enhancing production, trade, distribution, infrastructure, support and technological capabilities of the country. It mainly consist of foreign direct investment and portfolio investment that vantages of FDI and foreign portfolio, investment or money and also there are various limitations of it The FDI policy has been liberalised since 1991 and there are many major features of FDI policy, foreign collaborations are encouraged to acquire technology and know-how from abroad. The number of foreign collaborations and investments have been increasing since 1980. The policy of foreign collaboration has been liberalised since 1991. India must follow stringent and effective debt management procedure to further improve the situation of the debt that the country faces.

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