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Liberalisation and Mode of Entry:
Various new forms of FDI flows have also emerged. Besides mergers and joint ventures, transactional relationships are emerging such as licensing, franchising, management controls, turnkey ventures and international subcontracting, strategic alliances etc. This is another important feature of FDI inflows into India during 1990s is the emergence of mergers and acquisitions (M & As) as an important channel of FDI inflow. During the period 1997-1999, for instance, nearly 39 per cent of FDI inflows into India have taken the form of M &As by foreign companies of existing Indian enterprises. In the pre-refom period, FDI entry was invariably in the nature of green field investments. This trend may have implications in terms of additions to the stock of productive capital, technology transfers, generation of competitive atmosphere and so on.
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