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periods 1985-90 and 1991-2001 and write a detailed note on the annual trends of
these collaborations.
Ans Table 1. Foreign Investment Inflows
Year FDI(Net) Flls Euro Equities Total
and Others
1990-91 97 00 03 103
1996-97 2651 1926 1386 5963
1997-98 3525 979 849 5363
1998-99 2380 -390 322 2312
1999-2000 2093 2135 889 5117
2000-01 3272 1677 913 5862
2001-02 4741 1436 516 66693
2002-03 3611 342 602 4555
2002-03 2768 -186 537 3119
(April-Dec)
2003-04 2513 7219 403 10,135
(April-Dec)
1
B. Portfolio Investment: Aggregate portfolio investment inflows exhibited a declining
trend between 2000-01 and 2002-03. The declining trend of portfolio investment
observed during the above said period, however, witnessed a sharp reversal in 2003-
04. During the first 3 quarters of 2003-04, net portfolio investment stood at US $7.6
billion with aggregate portfolio inflows at US $17.3 billion.
2
These technical collaborations were allowed on royality or lumpsum payment or both.
Due to these relaxations, the number of approvals reached at a figure of 7436 involving a
total investment of Rs. 1,274 crore during the decade 1981-90.
Table 2. Total Foreign Technology Agreements (FTAs) and Foreign Direct
Investments (FDI) Approvals
(Amount in Rs. Crore)
Year Number of Approvals Amount of FDI Amount of FDI
(April-March) Approved Inflows
Total Technical Financial
Table 2 shows that total amount approved and the inflows of FDI in India. It indicates
that the FDI inflows in India have increased over the years, peaked at US $4.74 billion in
2000-01 and declined thereafter to US $3.73 billion in 2002-03 and further to US $3.57
billion in 2003-04. The amount of FDI approved also showed a declining trend.
Takeovers and Implementation of Foreign Collaborations
TNCs have taken over the well-known Indian brands and Indian entrepreneurs seem to
have lost their bargaining power.
Takeovers do not add new production capacities, rather they ad to higher outflow of
foreign exchange, which causes adverse BALANCE OF PAYMENT situation. Actually,
it has been noticed that the motive of foreign techno collaborators is not the transfer of
superior technology. Their main objective is to sell their old technology and capture
market.