FDI liberalization in India boosts service sector, attracts global investors.
The study looked at foreign investment in India from 1980 to 2018, focusing on the years 2000 to 2019. After India opened up to foreign investment in 1991, there was a big increase in money coming in from other countries. Most of this money was in the form of buying shares in Indian companies. Mauritius and Singapore were the top sources of this money, often used by investors to save on taxes. The service sector got the most foreign money, overtaking manufacturing. Overall, India got more foreign investment after opening up its economy, but its share of global investment didn't grow as much.