Private Foreign Investment in Post-Reform India: A Search for Proximate Determinant

This paper attempts to explore the proximate determinants of PFI, FDI and FPI in post- reform India using multiple regression analysis. The study finds share prices, corporate tax, labour disputes, fiscal deficit, gross domestic product and urban population form a good combination for attracting more PFI inflows to India. Similarly, share price, excise duty, exchange rate, openness, infrastructure and wage earnings for FDI, and corporate tax, gross domestic product, interest rate, exchange rate, infrastructure and science and engineering personnel for FPI. The study makes a case for specific policies to attract more investment either in the form of direct or portfolio inflows