FDI in India: Prospects for Pakistan



As India has liberalized its FDI regime for investment from Pakistan, new opportunities have opened up for investment between the two countries. This chapter aims to highlight Pakistan-specific investment opportunities in India. A sectoral approach is employed in this chapter whereby consultations are held with the business community in Pakistan already engaged in outward investments in sectors such as leather, sports, surgical, engineering, auto, education, textiles, and steel about their willingness to invest in India.

This chapter estimates total annual potential of Pakistan investment in India at US$1.6 billion. This is the maximum potential that can be realized if investment is allowed through both government and automatic routes. The textile sector heads the list with potential annual direct investment of US$760 million. The methodology used is twofold. Secondary data analysis is substantiated by in-depth interviews of investors based in Pakistan. This chapter also identifies sector-specific barriers to investment.

Policy recommendations are proposed with an emphasis on its implementation. For effectiveness of SAARC, this chapter also derives lessons that can be learned from ASEAN.


Foreign Direct Investment Foreign Investor Business Community Foreign Direct Investment Inflow Outward Foreign Direct Investment 


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Copyright information

© Indian Council for Research on International Economic Relations (ICRIER) 2015

Authors and Affiliations

  1. 1.Sustainable Development Policy InstituteIslamabadPakistan

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