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2. Business Environment CASE STUDY (20Marks) India, with the second largest population in the world, offers huge business opportunities for investors. The 'protectionist' government policies held back the pace of economic growth of the country until the true economic reforms started in 1991. Although Indian foreign direct investment (FDI) increased from $129 million in 1991- 1992 to $3,449 million in 2001-2002, it did not match the FDI growth rate of other developing nations, especially China.

3. Answer the following question. Q1. Discuss the major factors affecting FDI inflows into India until 2003 Q2. Discuss how the policy reforms in India had started to build up confidence among foreign investors.

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