THE EVOLUTION OF FDI POLICY IN INDIA

India has had a fluctuating policy towards attracting FDI since 1948.Its initial favorable attitude to foreign investment was followed by a more restrictive phase and then, an effort to attract foreign investment in a more aggressive and welcoming manner.1 The evolution of FDI policy in India can be categorized into four phases ? The first phase (1948-66)-Cautious welcome policy ? The second phase (1969 -1991)-Selective and Restrictive policy and then Partial liberalization policy ? The third phase (1991-2000)- Liberalization and open door policy ? The fourth phase (2000 ?till date)-increasing globalization of Indian economy.2