This volume offers an in-depth comparative analysis of FDI policies pursued by India and China since opening up. The nature, type, sources and direction of inflows to both the countries have been analysed exhaustively.

It is an incisive and comprehensive work which brings to fore the key differences in their policy framework, approaches and the implementation strategies.

The far reaching impact of FDI on trade, transfer of techno-logy and employment generation has been examined critically. It also explores the reasons for skewed regional distribution of FDI in both the countries.

The book articulates the role played by pragmatic policy, developed infrastructure and conducive operating environment in driving massive FDI flows into China.

The author convincingly advocates reorientation of Indian policies relating to development of infrastructure for export-oriented labour-intensive manufacture, labour laws regime and vesting of authority for investment approval in favour of state governments to accelerate the pace of FDI inflows. 

The conclusions are based on rich empirical evidence supported by statistical backup. The book contains cogent and compelling arguments and interesting insights.

It will prove useful to policy planners, researchers, academicians and students of international trade.
Excerpts from the Foreword:        

"The dawn of twenty first century promises to make India one of the three largest economies in the world. Documented studies project that in the next three decades, 40% of global economic growth will come from 3 countries – US, India and China...

"At this juncture, an analysis of FDI policy pursued by India and China and their relative successes is timely. Dr. Kundra has lucidly analysed the role of policy infrastructure incentives and the operating environment for mobilising foreign investment...

"This publication gives a comprehensive assessment of the nature and direction of FDI flows and the author has made a case for making the state governments as stakeholders for a decentralised investment approval mechanism and development of robust infrastructure for export oriented FDI. The book is rich in details and analysis of various dimensions which have a bearing on an evolving FDI policy... I am sure that this volume will be a rich contribution and be of enormous interest to policy planners, researchers and students of international trade."

Anand Sharma 
Union Minister of Commerce and Industry, Government of India

Ashok Kundra, a career civil servant, retired from the Indian Administrative Service in 2003. He has held many key assignments in the area of economic policy formulation in the Union government and the state of Punjab.

Apart from being Secretary to Government of India in the Ministry of Mines, he has been Chairman of Tariff Commission and ex-officio Secretary, Department of Industrial Policy and Promotion, Principal Adviser in the Planning Commission and Special Secretary in the Ministry of Environment and Forests.

He also had a long stint as Development Commissioner, Noida Export Processing Zone. In the state of Punjab, he has been Secretary Industries and chair-man of various joint venture companies promoted by the State government.

He did his Masters' in Economics from the Punjab University and holds a PhD from School of International Studies, Jawaharlal Nehru University, New Delhi.

The present study is a sequel to his earlier comparative work on Export Zones of India and China. The study has been undertaken as a senior fellow of Indian Council for Social Science Research.