ABSTRACT
The host government’s policy has an important role in influencing the magnitude, importance, pattern, form, and impact of foreign direct investment (FDI) in the economy. The government of India has pursued a selective policy towards foreign enterprise in accordance with her developmental objectives ever since Independence. This chapter provides a brief overview of the evolution of the government’s policy with respect to FDI, and its impact on the trends and patterns of FDI. This discussion, it is hoped, will serve as a useful background for the later analysis.
