Does FDI reduce poverty? Case studies from India.

The chapter explores the much contested linkages between poverty and the increasing more liberal Foreign Direct Investment (FDI) regimes in India. Attention is paid to the FDI inflows to the tertiary and the manufacturing sectors in Karnataka and Tamil Nadu respectively. The chapter is organised in five sections. An overview of the current debates on FDI and
2
poverty, followed by a brief discussion on the sectoral distribution of FDI and engagement with domestic economy is presented in section 2. Section 3 discusses the FDI trends in India, Tamil Nadu and Karnataka, identifying special features and the sectoral focus of FDI in each state. The links between the types of FDI and poverty within the context of Karnataka and Tamil Nadu are explored through a conceptual model of domestic human capital mapping in section 4. The conclusions of the chapter are presented in section 5.

Citation:
Tiwari, M. (2009) ‘Does FDI reduce poverty? Case studies from India’, in Rugraff, Eric, Sánchez-Ancochea, Diego and Sumner, Andrew (eds.) Transnational Corporations and Development Policy: Critical Perspectives. London: Palgrave Macmillan, pp.202-224..