The Foreign Direct Investment (FDI) conundrum

The FDI-GDP ratio
The FDI-GDP ratio in India is just 0.8 per cent against 16.8 per cent in Hong Kong, 12.2 per cent in Singapore, 4.3 per cent in China, and 3.7 per cent in Thailand. To meet the growing needs of the economy, the UPA government in its maiden budget proposed to increase the FDI in telecom, insurance banking and civil aviation. India also needs to signal a change in its attitude towards FDI through reforms package.