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Foreign Direct Investment (FDI) flows started gaining traction in
South Asia from the late 20th century onwards, when nations from
the South Asian Association for Regional Cooperation (SAARC) began
moving away from highly controlled regimes and adopting liberal and
open economic policies.In the context of surplus labour and capital
scarcity faced by South Asian countries such as India, Pakistan,
Bangladesh and Sri Lanka, to varying degrees, the economic reform
process has provided an opportunity to actively promote inward FDI
flows, with the goal of providing the much-needed capital for the
growth of this region. Several policy initiatives were undertaken
to attract FDI and incentives were announced to fascinate
investors, resulting in the inflow of FDI across the region.This
book examines FDI inflows in SAARC nations in the light of regional
policy changes in the 21st century. It investigates the
relationship between trade and FDI in the region, and also provides
insights into the ease of doing business in the SAARC region.
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