Us foreign direct investment in India: Emerging trends in MNC entry strategies

Abstract

India, along with China, is one of the key emerging markets in the region that has attracted multinational corporate interest. This has been enhanced by recent economic reforms and enormous market potential. After briefly tracing the political precipitants of the economic reforms, this article reviews the new FDI rules and the opportunities and challenges that this new investment climate presents the US investor. Finally, the FDIs of 30 US MNCs are classified according to the entry strategies being employed and some rationale is provided on the primary entry modes of choice.