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anufacturing from 1960s although with a divestment from this sector of FDI, since, low-wages, low skilled manpower are the India’s huge supply it can attract garments and other simple assembly activities which would indirectly favor the heavy foreign investment industry thus primarily focusing towards domestic market.

From mid 1990s a slight increase in software is observed as well as significant competition with the world market at industrial production was not notable (Park, J. H. 2002).some of the difficulties which are to be faced and over come for fast development of the country . India faced many difficulties to attract foreign investors in both products and services market now it is only success to service industry of IT mainly. In order to overcome these difficulties to stimulate domestic demand this is given in three steps:

The interest rates should be competitive in RBI.

Value added tax (VAT) are to be implemented.

Reduce the budget deficit through government.

Figure: shows the financial states of India and china GDP the total china’s financial assets is approximately 220 per cent of GDP at the same time India’s financial assets is 160 per cent, countries savings and investment is the great strength for china’s financial system and India’s financial system is outside occur in savings and investments (Sources: Slide share 2008, slide No:18).

3.2. Fundamental policies of FDI

India followed market-distorting policies on both foreign and private investments thus with this estimation about barriers for imports and exports are analyzed. Thus it become necessary to control the production and distribution as well as administered price controls etc. 

The impacts of opening up policies are likely to open up with foreign trade, investment and technology transfer, which would be much less in large countries of china and India when compared with all other East Asian NICs. China’s opening policies in recent years is the success story with the favorable impact is not only for small economies but also for all large continental economies. 

China and India may not suffer from a large country constriction for adopting the export-oriented, outward-looking development strategy considerably (Park, J. H. 2002). The reformist policy is to fill the domestic savings gap which is necessary for economic development with foreign capital inflows, along with other goals in advanced foreign technology and managerial skills, and to promote exports to increase the foreign exchange earnings of the country. 

Due to open-door policy China’s trade and inflow of foreign direct investment and loans are impressive, thus within a very short time china became a major exporting country, and an export competitor with the East Asian NICs (Newly Industrializing Countries) and ASEAN (Association of Southeast Asian Nations) countries in the Asia Pacific region. The opening policies in china have contributed to the country’s economic growth and development considering all domestic economic events. 

The India’s economic reforms undertaken in 1991 in light of China’s experie本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。