yagnesh eco.docx

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INTRODUCTION

Foreign Capital is the source,amount or amount of goods that is introduced in a

host country by a foreign country.Getting resources from another country or from outside the boundry of our

country.

When people think about globalization, they often first think of the increasing

volume of trade in goods and services. Trade flows are indeed one of the most

visible aspects of globalization. ut many analysts argue that international

investment is a much more powerful force in propelling the world toward closer

economic integration. !nvestment, often alter sentire methods of production

through transfers of know"how, technology and management techni#ues, and

thereby initiates much more significant change than the simple trading of goods.

$ver the past ten years, foreign investment has grown at a significantly more

rapid pace than either international trade or world economic production generally.

From %&'( to%&&', international capital flows, a key indication of investment

across borders, grew by almost )*+ annually, compared to the *+ growth rate of

international trade. This investment has been a powerful catalyst for economic

growth. ut as with many of the other aspects of globalization, foreign investmentis raising many new #uestions about economic, cultural and political relationships

around the world. Flows of investment and the rules that govern or fail to govern

it can have profound impacts upon such diverse issues as economic development,

environmental protection, labor standards and economic stability. Forms of

Foreign !nvestment !nternational investment or capital flows fall into four

principal

There are many Forms of Foreign Capital Flowing into India such as banking

and -! deposits. The various Forms of Foreign Capital Flowing into !ndia has

helped to bring in huge amounts of F ! into the country, which in its turn has

given a ma/or boost to the !ndian economy.


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Foreign Direct Investment (FDI):

This category refers to international investment in which the investor obtains alasting interest in an enterprise in another country. F ! is calculated to include allkinds of capital contributions, such as the purchases of stocks, as well as thereinvestment of earnings by a wholly owned company incorporated abroad0subsidiary1, and the lending of funds to a foreign subsidiary or branch. Thereinvestment of earnings and transfer of assets between a parent company and its

subsidiary often constitutes a significant part of F ! calculations. 2n investor3searnings on F ! take the form of profits such as dividends, retained earnings,management fees and royalty payments. !nternational investment or capital flowsfall into four principal categories4 commercial loans, official flows, foreign directinvestment 0F !1, and foreign portfolio investment 0F5!1.Commercial loans,which primarily take the form of bank loans issued to foreign businesses orgovernments.$fficial flows, which refer generally to the forms of developmentassistance that developed nations give to developing ones.

Foreign direct investment 0F !1 pertains to international investment in which the

investor obtains a lasting interest in an enterprise in another country. 6ostconcretely, it may take the form of buying or constructing a factory in a foreigncountry or adding improvements to such a facility, in the form of property, plants,or e#uipment.

F ! is calculated to include all kinds of capital contributions, such as the purchases of stocks, as well as the reinvestment of earnings by a wholly ownedcompany incorporated abroad 0subsidiary1, and the lending of funds to a foreignsubsidiary or branch. The reinvestment of earnings and transfer of assets betweena parent company and its subsidiary often constitutes a significant part of F !calculations.2ccording to the 7nited ations Conference on Trade and

evelopment 07 CT2 1, the global e8pansion of F ! is currently being driven by over 9*,((( transnational corporations with more than '*(,((( foreignaffiliates.2n investor:s earnings on F ! take the form of profits such asdividends, retained earnings , management fees and royalty payments .


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Foreign Portfolio Instit!tional Investment (FII):

F!! is a category of investment instruments that are more easily traded, may beless permanent, and do not represent a controlling stake in an enterprise. Theseinclude investments via e#uity instruments 0stocks1 or debt 0bonds1 of a foreignenterprise which does not necessarily represent a long"term interest. The returnsthat an investor ac#uires on F!! usually take the form of interest payments or non"voting dividends. !nvestments in F!! that are made for less than one year aredistinguished as short"term portfolio flows. Foreign portfolio investment 0F5!1, onthe otherhand is a category of investment instruments that is more easily traded,may be less permanent, and do not represent a controlling stake in an enterprise.These include investments via e#uity instruments 0stocks1 or debt 0bonds1 of a

foreign enterprise which does not necessarily represent a long"term interest.

;tocks4

dividend payments

holder owns a part of a company

possible voting rights

open"ended holding period

onds4

interest payments

ownership of bond rights only

no voting rights

specific holding period

While F ! tends to be commonly undertaken by multinational corporations, F5!comes from my diverse sources such as a small company:s pension or throughmutual funds held by individuals.

The returns that an investor ac#uires on F5! usually take the form of interest payments or dividends.


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!nvestments in F5! that are made for less than one year are distinguished as short"term portfolio flows. F5! flows tend to be more difficult to calculate definitively,

because they comprise so many different instruments, and also because reportingis often poor.


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W?A $ C$652 !


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The role of foreign capital in economic growth is much discussed nowadays but

remarkably little analysed. The basic ob/ective of this chapter is to investigate the

causal long run relationship between FC!s and economic growth of !ndia. The

FC!s"growth linkage assumes that the foreign capital inflows provide a significant

amount of contribution to the economic growth. To e8amine the same, first the

researcher developed a model on the basis of source of financing available to an

economy i.e. domestic capital and foreign capital. 2fter that the researcher

employed co"integration test and


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Conventionally, the two"gap approach /ustifies the role of foreign capital for

rela8ing the two ma/or constraints to growth 0Chenery and urno, %&9)H

6ckinnon, %&9 1. !n the neoclassical framework, however, capital neither

e8plains differences in the levels and rates of growth across countries nor can

large capital flows make any significant difference to the growth rate that a

country could achieve 0 rugman, %&&I1. Fitz Gerald 0%&&'1 theoretically argues

that higher capital inflows lower interest rates, which help increase investment

and economic growth. !n their attempt to measure the link between growth and

capital inflows into !ndia, 6arwah and lein 0%&&'1 starts by discussing the two

alternative frameworks for analysing the impact of inflows4

a macroeconomic growth model in which the 9) effect of F ! is

e8amined through its effects on the saving ratio and the capital output

ratio and a multifactor production function is estimated to capture the changes

induced by F ! in the relevant parameters. 2dopting framework they assume constant returns to scale and four main inputs" labour,

domestic capital, foreign capital and imports.

The econometric analysis is based on annual observations for the period %&*%"'&

or appropriate sub periods. -esults suggest that for every one percentage growth

point, (.I*% is generated by growth of domestic and foreign capital nested

together, (.*9& by labour and (.(' by imports. The contribution of the two types

of capital to the growth in productivity can be allocated in proportion to their

respective weights in the total nest. !n this chapter an attempt has been made to

establish the relationship between foreign capital and economic growth of the

!ndian economy. The purpose of foreign capital to under developed countries is

to accelerate their economic development upto a point where a satisfactory

growth rate can be achieved on a self"sustaining basis. Capital flows in the formof private investmentH foreign investment, foreign aid and private bank lending

are the principal ways by which resources can come from rich to poor

countries. The transmission of technology, ideas and knowledge are other special

types of resource transfers. Capital flows have begun to play a significant role in

!ndia:s growth dynamics.


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Factors Infl!encing Foreign Investment Decisions

The policy frameworks relating to F ! and F!! are relatively similar, althoughthere are a few differences. The determinants of F!! are somewhat comple8

because portfolio investment earnings are more likely to be tied to the broadermacroeconomic indicators of a country, such as overall market capitalization of aneconomy, they can be more sensitive to factors such as4J ?igh national economicgrowth ratesJ


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trade policy and privatization policy

business facilitation measures, such as investment promotion, incentives,improvements in amenities and other measures to reduce the cost of doing

business. For e8ample, some countries set up special e8port processing

zones, which may be free of customs or duties, or offer special ta8 breaksfor new investors

restrictions, if any, on bringing home earnings or profits in the form ofdividends, royalties, interest or other payments

The determinants of F5! are somewhat more comple8, however. ecause portfolioinvestment earnings are more likely to be tied to the broader macroeconomicindicators of a country, such as overall market capitalization of an economy, theycan be more sensitive to factors such as4

high national economic growth rates

e8change rate stability

general macroeconomic stability

levels of foreign e8change reserves held by the central bank

general health of the foreign banking system li#uidity of the stock and bond market

interest rates

!n addition to these general economic indicators, portfolio investors also look atthe economic policy environment as well, and especially at factors such as4

the ease of repatriating dividends and capital

ta8es on capital gains

regulation of the stock and bond markets

the #uality of domestic accounting and disclosure systems

the speed and reliability of dispute settlement systems


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the degree of protection of investor:s rights

"#$# Foreign direct investment (FDI)

!t is defined as a long"term investment by a foreign direct investor in an

enterprise resident in an economy other than that in which the foreign direct

investor is based. The F ! relationship, consists of a parent enterprise and a

foreign affiliate which together form a transnational corporation 0T C1. !n order

to #ualify as F ! the investment must afford the parent enterprise Control over its

foreign affiliate. The 7 defines control in this case as owning %(+ or more of

the ordinary shares or voting power of an incorporated firm or its e#uivalent for an unincorporated firm.


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T%pes of Foreign Direct Investment

'reenfield investment:

irect investment in new facilities or the e8pansion of e8isting facilities. Green

field investments are the primary target of a host nation:s promotional efforts

because they create new production capacity and /obs, transfer technology and

know"how, and can lead to linkages to the global marketplace. ownside of

Greenfield investment is that profits from production do not feed back into the

local economy, but instead to the multinational3s home economy. This is in

contrast to local industries whose profits flow back into the domestic economy to

promote growth.

"# ergers and c*!isition

Transfers of e8isting assets from local firms to foreign firms takes placeH the

primary type of F !. Cross"border mergers occur when the assets and operation

of firms from different countries are combined to establish a new legal entity.

+# ,ori-ontal Foreign Direct Investment:

!nvestment in the same industry abroad as a firm operates in at home. !nvesting

company invest in the same business what they does ! their own domestic country.

.# /ertical Foreign Direct Investment:

%1 ackward vertical F !4 where an industry abroad provides inputs for a firm3sdomestic production process

)1 Forward vertical F !4 in which an industry abroad sells the outputs of a firm3s

domestic production


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Why Has Foreign Investment Increased So Dramatically in RecentDecades

2s stated earlier in this !ssue in epth, international investment levels havee8ploded in recent decades. These increases in the flows of foreign investmenthave themselves marked a new and distinct phenomenon in the era of globalization. ;everal factors have helped drive this growth4

%1 Technology4 Telecommunications and transportation advances have simplymade it easier to do business across large distances. 2s former 2merican 5residentWilliam efferson Clinton once pointed out, in the %&9(s, transatlantic telephonelines could only accommodate '( simultaneous calls between


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)1The lure of higher profits4 !n the %&'(s and early %&&(s, a number of countriesin


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I PORT NC0 ND 1 RRI0R2

The rapid growth of world population since %&*( has occurred mostly in

developing countries. This growth has been matched by more rapid increases in

gross domestic product, and thus income per capita has increased in most

countries around the world since %&*(. While the #uality of the data from %&*(may be of #uestion, taking the average across a range of estimates confirms this.

$nly war"torn and countries with other serious e8ternal problems, such as ?aiti,

;omalia, and iger have not registered substantial increases in G 5 per capita.

The data available to confirm this are freely available.

2n increase in F ! may be associated with improved economic growth due to the

influ8 of capital and increased ta8 revenues for the host country. ?ost countries

often try to channel F ! investment into new infrastructure and other pro/ects to boost development. Greater competition from new companies can lead to

productivity gains and greater efficiency in the host country and it has been

suggested that the application of a foreign entity:s policies to a domestic

subsidiary may improve corporate governance standards. Furthermore, foreign

investment can result in the transfer of soft skills through training and /ob


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creation, the availability of more advanced technology for the domestic market

and access to research and development resources. The local population may be

able to benefit from the employment opportunities created by new businesses

T,0 RO30 OF U3TIN TION 32 ND FOR0I'N

IN/02T 0NT

Foreign direct investment plays an e8traordinary important role in inclusive

globalization. !t is dramatically increasing in the age of globalization. !t has

played important role for

economic growth in this global process. !t can provide a firm with new markets

and marketing channels, cheaper production facilities, access to new technology,

products, and skills and financing, F ! has come to play a ma/or role in the

internationalization of business. -eacting to changes in

technology, growing liberalization of the national regulatory framework

governing investment in enterprises, and changes in capital markets profound

changes have occurred in the size, scope and methods of F !. ew information

technology systems, decline in global communication costs have

made management of foreign investments far easier than in the past. Foreign

irect !nvestment allows companies to accomplish several tasks like avoiding

foreign Government pressure on local


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production, making the move from domestic e8port sales to a locally"based

national sales office, capability to increase local production capacity,

opportunities for co" production, /oint venture with

local partners etc. F ! provide opportunities to host countries to enhance their

economic development and opens new opportunities to home countries to

optimize their earnings by

employing their ideal resources. ;maller and weaker economies and can drive out

much local competition. For small and medium sized companies, F ! represents

an opportunity to become

more actively involved in international business activities. !n the past decade,

foreign direct investment has e8panded its role by change in trade policy,

investment policy, tariff liberalization, easing of restrictions on foreign investmentand ac#uisition in many nations, and the deregulation

and privatization of many industries. !n present competitive scenario, F ! has

become a prominent source of e8ternal finance for developing countries.

From the empirical studies focusing on structural e8planations for the movements

in terms of trade, as of yet none have focused on the role of multinational

corporations 06 Cs1 and foreign direct investment 0F !1 even though 5rebisch

and ;inger themselves have emphasized their role and structuralist strands of the

literature have argued that they were responsible for the tendency of the terms of

trade to deteriorate. and borrowing countries:, already highlighting the role of

foreign investment between industrial and developing countries which has to be

understood to be direct investment 0as opposed to portfolio investment or other

capital flows, such as aid1 without doubt4 Lthe productive facilities for producing

e8port goods in underdeveloped countries are often foreign owned: 0%&*(4 @ 1,

and ownership here constitutes control which is the characteristic of direct

investment. 2ccording to ;inger, this would bring along a certain Ltype of foreign

trade: that Lfailed to spread industrialization to the countries in which the

investment took place:. 2ccordingly, this Lforeign trade" cum "investment based on

e8port specialization on food and raw materials: has reduced the benefits to


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underdeveloped countries through falling terms of trade 0%&*(4 @@1. 2lso, in

5rebisch: contribution, profit transfers between industrialized and developing

countries play a crucial role, although this has barely been recognized in the

literature. The above mentioned labour market asymmetries 0cf. section ).)1

merely bring into force this underlying mechanism that operates through the

business cycle. 6ore precisely, during the upswing a part of profits from the

entrepreneurs at the centre 0that is not absorbed by wage increases1 is transferred

to the primary producers of the

periphery . uring the downswing, however, resistance to a lowering of wages is

high at the centers and the pressure thus moves towards the periphery, LThe less

that income can contract at the centre, the more it must do so at the periphery:

.While most parts of the 5;T literature have focused on 5rebisch: characterizationof labour markets as being different between center and periphery, it is important

to stress that 5rebisch 0%&*(4 %I"% 1 himself highlights the ine#uality between

supply and demand in the cyclical centers and the nature of the international

division of labour as sufficient for higher income rises in the industrial than in the

developing countries M Leven if there e8isted as great a Nlabour marketO rigidity at

the periphery as at the centre: see this contribution of 5rebisch as the Lgerm of the

idea: for dependency and world system theory, the %&@(s Lmetamorphosis of

structuralist economics: whose core was formed by C


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capital"scarce economies of developing countries, !ndia opened up to investments

from abroad gradually over the past two decades, especially since the landmark

economic liberalisation of %&&%. 2part from helping in creating additional

economic activity and generating employment, foreign investment also facilitates

flow of technology into the country and helps the industry to become more

competitive. F ! and F!! are e#ually connected to investment in a foreign country.

F ! or Foreign irect !nvestment is an investment that a parent company builds

in a foreign nation. $n the different, F!! or Foreign !nstitutional !nvestor is an

investment prepared by an investor in the markets of a foreign country. !t is with

this aim an attempt has been made in this paper to test the correlation between

foreign institutional investments or foreign direct investment and the real

economic growth in !ndia over a period

I P CT OF FOR0I'N C PIT 3

The recent wave of financial globalization and its aftermath has been marked by a

surge in international capital flows among the industrial and developing countries,

where the notions of tense capital flows have been associated with high growth

rates 0


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0Griffin, )((&1. Theoretical and empirical research on the role of foreign capital in

the growth process has generally yielded conflicting results Conventionally, the

two"gap approach /ustifies the role of foreign capital for rela8ing the two ma/or

constraints to growth !n the neoclassical framework, however, capital neither

e8plains differences in the levels and rates of growth across countries nor can

large capital flows make any significant difference to the growth rate that a

country could achieve 0 rugman,%&&I1. Fitz Gerald 0%&&'1 theoretically argues

that higher capital inflows lower interest rates, which help increase investment

and economic growth. !n their attempt to measure the link between growth and

capital inflows into !ndia, 6arwah and lein 0%&&'1 starts by discussing the two

alternative frameworks for analysing the impact of inflows4 0a1 a macroeconomic

growth model in which the effect of F ! is e8amined through its effects on thesaving ratio and the capital output ratio and 0b1 a multifactor production function

is estimated to capture the changes induced by F ! in the relevant parameters.

2dopting framework 0b1 they assume constant returns to scale and four main

inputs" labour, domestic capital, foreign capital and imports. The econometric

analysis is based on annual observations for the period %&*%"'& or appropriate

sub periods. -esults suggest that for every one percentage growth point, (.I*% is

generated by growth of domestic and foreign capital nested together, (.*9& by

labour and (.(' by imports. The contribution of the two types of capital to the

growth in productivity can be allocated in proportion to their respective weights

in the total nest. !n this chapter an attempt has been made to establish the

relationship between foreign capital and economic growth of the !ndian economy.

The purpose of foreign capital to under developed countries is to accelerate their

economic development upto a point where a satisfactory growth rate can be

achieved on a self"sustaining basis. Capital flows in the form of private

investmentH foreign investment, foreign aid and private bank lending are the

principal ways by which resources can come from rich to poor countries. The

transmission of technology, ideas and knowledge are other special types of

resource transfers. Capital flows have begun to play a significant role in !ndia:s

growth dynamics.


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according to what form any given investment started out as. The potentially

positive effects of F ! include inducing incumbent firms to upgrade their

technology, and spill"over benefits so that local competitors can learn from

6 Cs: technological and managerial practices. The potentially negative effects

include the possibility of 6 Cs deliberately raising concentration levels, forcing

competitors out of business by predatory pricing, taking away skilled labour and

-P staff from local firms, or engaging in restrictive business practices

which,among other things, may deter technological development.2 well educated

and trained workforce is one of the location advantages that host countries can

provide to attract and retain inward F !

,!man Capital 0n4ancement

eveloping countries need to have reached a certain threshold of development to

be able to fully absorb new technologies.


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income, but also through vertical linkages with suppliers and others. =abour

turnover, on the other hand, may have rather different implications for the

individual firm on the one hand, and the wider economy on the other. For the

individual firm, some degree of labour stability will be re#uired to ensure that the

benefits from training flow back to the firm rather than moving on to rival firms.

For the economy as a whole, however, such movement may generate positive

spill"over effects. To some e8tent the successful creation of industrial districts can

internalise what would otherwise be e8ternalities to the firm, so that labour

turnover becomes less costly, as the firm becomes more likely to benefit from

recruiting already skilled labour, and will also benefit from the fact that other

firms within the region are operating at or near the relevant technological frontier.

I P CT OF FOR0I'N C PIT 3 ON CRO 0CONO IC

The endogenous growth theories strongly support the role of F ! in

promoting economic growth in host countries. !n these theories, F ! is viewed as

a way to transfer knowledge, promote learning by doing, bring in technology spillover, and human capital growth. Conse#uently, F ! stimulates economic growth

in host countries .There are still inconclusive arguments for and against the role of

F ! inflows in enhancing economic growth in a country. Whether F ! inflows are

beneficial or not to economic growth especially in host developing countries are

still debateable among economists. !t is therefore very essential to analyse

e8pected theoretical relationship between F ! and these macro economic

variables before doing empirical investigation regarding their relationship. This

has been discussed below4

'ross Domestic Prod!ct:

Gross domestic product0G 51 is defined by the $rganisation for


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e#ual to the sum of the gross values added of all resident institutional units

engaged in production 0plus any ta8es, and minus any subsidies, on products not

included in the value of their outputs1.Q

G 5 estimates are commonly used to measure the economic performance of a

whole country or region, but can also measure the relative contribution of an

industry sector. This is possible because G 5 is a measure of 3value added3 rather

than salesH it adds each firm3s value added 0the value of its output minus the value

of goods that are used up in producing it1. For e8ample, a firm buys steel and adds

value to it by producing a carH double counting would occur if G 5 added

together the value of the steel and the value of the car. ecause it is based on

value added, G 5 also increases when an enterprise reduces its use of materialsor other resources 0 3intermediate consumption 31 to produce the same output.

The more familiar use of G 5 estimates is to calculate the growth of the economy

from year to year 0and recently from #uarter to #uarter1. The pattern of G 5

growth is held to indicate the success or failure of economic policy and to

determine whether an economy is 3in recession 3.

The most widespread belief among researchers and policy makers is that

F ! boosts growth through different channels. !t increases the capital stock,

stimulates technological change through technological diffusion and generates

technological spillovers for local firms. Foreign investment is e8pected to

increase and improve the e8isting stock of knowledge in the recipient economy

through labour training, skill ac#uisition and diffusion. !t contributes by

introducing new management practices and a more efficient organization of the

production process. 2s a result, F ! improves the productivity of host countries

and stimulates economic growth in terms of increase in G 5 .!nvestigating the

impact of foreign capital on economic growth has important policy implications.

5ositive impact of F ! on economic growth weakens the arguments for restricting

foreign investment in the host country. ?owever the negative impact of F ! on
http://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Economic_policyhttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/Intermediate_consumptionhttp://en.wikipedia.org/wiki/Economic_policyhttp://en.wikipedia.org/wiki/Recession


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growth would suggest a reconsideration of development policies adopted by

countries for attracting F ! to enhance the level of their growth

Foreign 05c4ange Reserves:

Foreign"e8change reserves 0also calledfore8 reserves or FR reserves1 are assets

held by central banks and monetary authorities , usually in different reserve

currencies , mostly the 7nited ;tates dollar , and to a lesser e8tent the


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to the information and marketing networks of their parent enterprises which

facilitates their efforts to increase foreign e8change reserves in the host country.

'ross Capital Formation:

!t is the creation of productive assets that e8pand an economy3s capacity to

produce goods and services. 5rivate savings facilitate capital formation by

allowing resources to be diverted to corporate investment rather than individual

consumption. !t is very crucial macro economic parameter which determines the

growth of an economy. ;ince F ! establishes backward and forward linkages withlocal industries, it can also encourage domestic investment by creating an

enabling investment environment through transferring technologies and better

management techni#ues. Transnational corporations typically have access to a

wide variety of financing options. The risk"ad/usted cost of capital is usually

lower for them than the domestic firms in developing countries. Foreign firms can

undertake pro/ects for which domestic investors do not have the capacities to

carry out or which are considered too risky for host country firms. !n such cases,

F ! also serves to stimulate domestic investment by further boosting the total host

country investment. F ! not only adds to e8ternal financial resources for host

country development, it is also more stable than other forms of financing.

0mplo%ment:
http://financial-dictionary.thefreedictionary.com/economic+growthhttp://financial-dictionary.thefreedictionary.com/economic+growth


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by air, shipped by vessel, uploaded to an internet site, or downloaded from an

internet site.


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CONC3U2ION

preliminary analysis of F!! flows to !ndia and their influence onthe prices of

stocks in the !ndian stock market. 2 more detailed study using daily

data of e#uity returns for a longer period or, better still, disaggregateddata showing the t ransactions of individual F!!s a t the s tock level

can help address #uestions regarding the e8tent of herding or return"

chasing behavior among F!!s which now account for a significant part

of the capital account balance in our balance of paymen ts . The e8te nt

to which F!! participation in !ndian markets has helped lower cost of

cap ita l to !nd ian industries is also an important issue to investigate. roade r

and more long"term issues involving foreign portfolio investment in

!ndia a nd t he ir e co no m y" wi de i mp li ca t i on s h av e n ot b e en

ad dre ss ed in th is pa pe r. ;u ch issues would invariably re#uire an

estimation of the societal costs of the volatility and u n c e r t a in t y a s so c i a t e d

w i th F ! ! f l o w s. 2 d e t a il e d u n de r st a nd i ng o f t h e n a tu r e a n d

d e t e r mi n a n ts o f F ! ! f l o w s t o ! n d i a w o u l d h e l p u s a d d r e s s s u c h


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# u e s t i o n s i n a m o r e i n f o r m e d m a n n e r a n d a l l o w u s t o b e t t e r

eva lua te the r i sk s and ben ef i t s o f fore ign portfolio investment in

!ndia

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