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Significant limits on inward FDI in order to encourage the growth of an indigenous industry

 

For years, India placed significant limits on inward FDI in order to encourage the growth of an indigenous industry. Why do you think it relaxed many of those regulations at the end of the 1990s and early 2000s? What were the benefits to the India economy? Was there a downside? [20 points]

 

3- What does this case teach you about government policy toward FDI? [10 points]

 

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