FDI: Best practice policies
In 2011 around 80% of the inward Foreign Direct investment (FDI) went exclusively to the real estate, construction and accommodation sectors. In 2012 we do not think it differed much with the exception of an inward investment of Rs 3 billion from the Barclays Bank that rescued to some extent the FDI figure for the year. These are one-off investment; it does not in any way boost our export potential or enhance our productivity and flexibility. There is no transfer of technology or know-how or any multiplier effects on the economy especially for the IRS projects that are not integrated to the tourism industry. More recently there have been efforts at diversifying FDI inflows - a timely shift from concern about quantity flows to the quality of FDI . By quality we mean high-value added FDI or FDI that have positive linkages and spillovers effects for the domestic economy.
