ABSTRACT
In India it is not clear whether foreign direct investment (FDI) and its associated transnational corporations (TNCs) have contributed sufficient leadership in fulfilling local and global environmental targets. The role of FDI in the Indian economy has varied over time, largely as a response to the changing perception and policies of the Indian government. To ensure that TNCs make the greatest contribution to their economies, host governments may need to institute screening mechanisms that weed out detrimental FDI projects and encourage beneficial ones. It is difficult to generalize on the environmental behaviour of the TNCs. The environmental practices of FDI in India have so far had both negative and positive effects on India's environment. The most striking examples are the activities of TNCs in environmental services such as the provision of solar power, waste management consultancies and water cleaning projects.
