Faculty of Management (UG)

A PROJECT REPORT
ON
ECONOMIC RELATIONS BETWEEN INDIAN AND SRILANKA

(BBA-IB) (2018-19)

IN PARTIAL FULFILLMENT OF
Bachelor of Business Administration -International Business
By
Roll : 1-
9-

PUNE: 411038
 (i)

CERTIFICATE

This is to certify that we student of SY BBA-IB Trimester-III has successfully completed the
project work in partial fulfillment of requirement for the subject “INTERNATIONAL
ECONOMICS” for the award of Bachelor of Business Administration (International
business) prescribed by the Dr. Vishwanath Karad MIT- World Peace University

This project is the record of authentic work carried out during the academic year
2019-20

Program Coordinator& Subject in Charge (Dr.) R.M. Chitnis

(UG) Dean,
Faculty of Management
 DECLARATION

We hereby declare that this project on statistics is the record of authentic work carried out by
me during the academic year 2019-20 and has not been submitted to any other University or
Institute towards the award of any degree

Signature of student
INDEX

S. No. Chapters Pg. no.

1. Introduction to country – SRILANKA & INDIA

2. Commercial ties

3. Trade relations

4. Imports and exports between the countries

5. GDP analysis and comparison

6. Rate of Inflation , Unemloyment and poverty

7. FDI flow between two

8. Conclusion

9. Bibliography

10. Pictures

1.INTRODUCTION

INDIA AND SRILANKA

INIDA: India (official name: the Republic of India Hindi: Bhārat Gaṇarājya) is a country
in South Asia. It is the seventh-largest country by area, the second-most populous country,
and the most populous democracy in the world. Bounded by the Indian Ocean on the south,
the Arabian Sea on the southwest, and the Bay of Bengal on the southeast, it shares land
borders with Pakistan to the west; China, Nepal, and Bhutan to the north; and Bangladesh and
Myanmar to the east. In the Indian Ocean, India is in the vicinity of Sri Lanka and the
Maldives; its Andaman and Nicobar Islands share a maritime border with Thailand and
Indonesia
SRILANKA: Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, is an
island country in South Asia, located in the Indian Ocean to the southwest of the Bay of
Bengal and to the southeast of the Arabian Sea. The island is geographically separated from
the Indian subcontinent by the Gulf of Mannar and the Palk Strait. The legislative capital, Sri
Jayawardenepura Kotte, is a suburb of the commercial capital and largest city, Colombo.

RELATIONS BETWEEN SRILANKA AND INDIA

India–Sri Lanka relations are Diplomatic relations between India and Sri Lanka. Only 4% of
Sri Lankans have a negative view on India the lowest of all the countries surveyed by the
Ipsos Global Scan. The two countries are also close on economic terms with India being the
island's largest trading partner and an agreement to establish a proto single market also under
discussion at an advanced stage. There are deep racial and cultural links between the two
countries. India is the only neighbour of Sri Lanka, separated by the Palk Strait; both nations
occupy a strategic position in South Asia and have sought to build a common security
umbrella in the Indian Ocean. Both India and Sri Lanka are republics within the
Commonwealth of Nations.

They have been however tested by the Sri Lankan Civil War and by the controversy of Indian
intervention during the war. In recent years Sri Lanka has moved closer to China, especially
in terms of naval agreements. India has signed a nuclear energy deal to improve relations.
India made a nuclear energy pact with Sri Lanka in 2015

Indian intervention in the Sri Lankan civil war

In the 1970s–1980s, private entities and elements in the Research and Analysis Wing and the
state government of Tamil Nadu were believed to be encouraging the funding and training for
the Liberation Tigers of Tamil Eelam, a separatist insurgent force.

In 1987, faced with growing anger amongst its own Tamils, and a flood of refugees, India
intervened directly in the conflict for the first time after the Sri Lankan government attempted
to regain control of the northern Jaffna region by means of an economic blockade and
military assaults, India supplied food and medicine by air and sea. After subsequent
negotiations, India and Sri Lanka entered into an agreement/13th amendment.

The peace accord assigned a certain degree of regional autonomy in the Tamil areas with
Eelam People's Revolutionary Liberation Front (EPRLF) controlling the regional council and
called for the Tamil militant groups to lay down their arms. Further India was to send a
peacekeeping force, named the IPKF to Sri Lanka to enforce the disarmament and to watch
over the regional council.

According to Rejaul Karim Laskar, a scholar of Indian foreign policy, Indian intervention in
Sri Lankan civil war became inevitable as that civil war threatened India's “unity, national
interest and territorial integrity.” According to Laskar, this threat came in two ways: On the
one hand external powers could take advantage of the situation to establish their base in Sri
Lanka thus posing a threat to India, on the other the LTTE’s dream of a sovereign Tamil
Eelam comprising all the Tamil inhibited areas (of Sri Lanka and India) posed a threat to
India’s territorial integrity.

Even though the accord was signed between the governments of Sri Lanka and India, with the
Tamil Tigers and other Tamil militant groups not having a role in the signing of the accord,
most Tamil militant groups accepted this agreement, the LTTE rejected the accord because
they opposed the candidate, who belonged to another militant group named Eelam People’s
Revolutionary Liberation Front (EPRLF), for chief administrative officer of the merged
Northern and Eastern provinces. Instead the LTTE named three other candidates for the
position. The candidates proposed by the LTTE were rejected by India. The LTTE
subsequently refused to hand over their weapons to the IPKF.

The result was that the LTTE now found itself engaged in military conflict with the Indian
Army, and launched their first attack on an Indian army rations truck on October 8, killing
five Indian para-commandos who were on board by strapping burning tires around their
necks. The government of India then decided that the IPKF should disarm the LTTE by force,
and the Indian Army launched number of assaults on the LTTE, including a month-long
campaign dubbed Operation Pawan to win control of the Jaffna peninsula from the LTTE.
When the IPKF engaged the LTTE, the then president of Sri Lanka, Ranasinghe Premadasa,
began supporting LTTE and funded LTTE with arms. During the warfare with the LTTE,
IPKF was also alleged to have made human rights violation against the civilians.

Notably, IPKF was alleged to have perpetrated Jaffna teaching hospital massacre which was
the killing of over 70 civilians including patients, doctors and nurses. The ruthlessness of this
campaign, and the Indian army's subsequent anti-LTTE operations made it extremely
unpopular amongst many Tamils in Sri Lanka. The conflict between the LTTE and the Indian
Army left over 1,000 Indian soldiers dead.

The Indo-Sri Lankan Accord, which had been unpopular amongst Sri Lankans for giving
India a major influence, now became a source of nationalist anger and resentment as the
IPKF was drawn fully into the conflict. Sri Lankans protested the presence of the IPKF, and
the newly elected Sri Lankan president Ranasinghe Premadasa demanded its withdrawal,
which was completed by March 1990. On May 21, 1991, Rajiv Gandhi was assassinated and
the LTTE was alleged to be the perpetrator. As a result, India declared the LTTE to be a
terrorist outfit in 1992.
 Bilateral relations improved in the 1990s and India supported the peace process but has
resisted calls to get involved again. India has also been wary of and criticised the extensive
military involvement of Pakistan in the conflict, accusing the latter of supplying lethal
weaponry and encouraging Sri Lanka to pursue military action rather than peaceful
negotiations to end the civil war.

President Maithripala Sirisena with Prime Minister Narendra Modi

Culture
The two countries share near-identical racial and cultural ties. Sinhalese people who make up
75% of total population are descending from Northern Indian Indo Aryan settlers who
migrated the Island from 543BCE to 243BCE.

2.COMMERCIAL TIES

India and Sri Lanka are member nations of several regional and multilateral organizations
such as the South Asian Association for Regional Cooperation (SAARC), South Asia Co-
operative Environment Programme, South Asian Economic Union and BIMSTEC, working
to enhance cultural and commercial ties.
Since a bilateral free trade agreement was signed and came into effect in 2000, Indo-Sri
Lankan trade rose 128% by 2004 and quadrupled by 2006, reaching US$2.6 billion.

Between 2000 and 2004, India's exports to Sri Lanka in the last four years increased by
113%, from US$618 million to $1,319 million while Sri Lankan exports to India increased by
342%, from $44 million to $194 million.

Indian exports account for 14% of Sri Lanka's global imports. India is also the fifth largest
export destination for Sri Lankan goods, accounting for 3.6% of its exports. Both nations are
also signatories of the South Asia Free Trade Agreement (SAFTA).

Negotiations are also underway to expand the free trade agreement to forge stronger
commercial relations and increase corporate investment and ventures in various industries.
The year 2010 is predicted to be the best year for bilateral trade on record, with Sri Lanka's
exports to India increasing by 45% over the first seven months of the year

India's National Thermal Power Corp (NTPC) is also scheduled to build a 500 MW thermal
power plant in Sampoor (Sampur). The NTPC claims that this plan will take the Indo-Sri
Lankan relationship to new level.

Fishing disputes

There have been several alleged incidents of Sri Lankan Navy personnel firing on Indian
fishermen fishing in the Palk Strait, where India and Sri Lanka are only separated by 12
nautical miles. The issue started because of Indian fishermen having used mechanised
trawlers, which deprived the Sri Lankan fishermen (including Tamils) of their catch and
damaged their fishing boats. The Sri Lankan government wants India to ban use of
mechanized trawlers in the Palk Strait region, and negotiations on this subject are
undergoing.

So far, no concrete agreement has been reached since India favours regulating these trawlers
instead of banning them altogether.

Another cause of anger amongst the Sri Lankan side is the use of mechanized trawlers,
which they view as ecologically damaging. Presently there is no bona fide Indian fisherman
in Sri Lankan custody. A Joint Working Group (JWG) has been constituted to deal with the
issues related to Indian fishermen straying in Sri Lankan territorial waters, work out
modalities for prevention of use of force against them, the early release of confiscated boats
and explore possibilities of working towards bilateral arrangements for licensed fishing. The
JWG last met in Jananuary 2006.

India officially protested against the Sri Lankan Navy for its alleged involvement in attacks
on Indian fishermen on January 12, 2011. After the official protest, another fisherman was
killed on 22 January 2011. Over 730 fishermen have been killed in the last 30 years.

The apathetic attitude of the Indian government and the national media towards the alleged
killing of Tamil Nadu fishermen by the Sri Lankan Navy has been strongly condemned.
Several Tamil Nadu politicians like Vaiko and Jayalalitha have condemned the federal
government for not doing enough to stop the killing of Indian Tamil fishermen, and for
offering training, equipment, and strategic cooperation for the Sri Lankan Navy. In 2010
Naam Thamizhar Katchi Chief coordinator Seeman got arrested under National security act
for his reported statement that he would attack the Sri Lankan students if the killing of Tamil
fishermen continued by the Sri Lankan navy. Later he got acquitted of the charges and set
free by the Madras high court.

In November 2014, Sri Lanka ordered capital punishment to Indian fishermen who were
allegedly involved in drug supply or other kind of smuggling. Activists from India
approached to Sri Lankan government through an appeal, where they stated the need to
strengthen south Asian regional cooperation for all such issues. It was appealed that though
crime of any kind must get punishment, but capital punishment must be revoked in this case
and in general from all over south Asia.

Sri Lanka Prime Minister Ranil Winckramsinghe told during an interview to a television
channel in March 2015 that 'if Indian fishermen will cross the sea boundary, Sri Lankan navy
can shoot them.' This remark sparked controversy over Sri Lanka–India relations. External
affairs minister of India raised the issue with meeting her counterpart in Sri Lanka, but the
statement of PM of Sri Lanka was condemned by civil rights activists, and open letters were
written to PMs of Sri Lanka and India to resolve the dispute and to apologize for statements.

Development co-operation

India is active in a number of areas of development activity in Sri Lanka. About one sixth of
the total development credit granted by India is made available to Sri Lanka.

In the recent past three lines of credit were extended to Sri Lanka: US$100 million for capital
goods, consumer durables, consultancy services and food items, US$31 million for supply of
300,000 MT of wheat and US$150 million for purchase of petroleum products. All of the
lines of credit have been fully used. Another line of credit of US$100 million is now being
made available for rehabilitation of the Colombo-Matara railway.

A number of development projects are implemented under Aid to Sri Lanka funds. In 2006-
07, the budget for Aid to Sri Lanka was Rs 28.2 Cr.

A memorandum of understanding on Cooperation in Small Development Projects has been

signed. Projects for providing fishing equipment to the fishermen in the East of Sri Lanka and
solar energy aided computer education in 25 rural schools in Eastern Sri Lanka are under
consideration.

India have supplied medical equipment to hospitals at Hambantota and Point Pedro, supplied
4 state-of-the-art ambulances to the Central Province, implemented a cataract eye surgery
programme for 1500 people in the Central Province and implemented a project of renovation
of OT at Dickoya hospital and supplying equipment to it.

The projects under consideration are co nstruction of a 150-bed hospital at Dickoya,

upgradation of the hospital at Trincomalee and a US$7.5 million grant for setting up a cancer
hospital in Colombo. India also contributes to the Ceylon Workers Education Trust that gives
scholarships to the children of estate workers.
A training programme for 465 Sri Lankan Police officers has been commenced in Dec 2005.
Another 400 Sri Lankan Police personnel are being trained for the course of Maintenance of
Public Order.

Indian governments have also showed interest in collaborating with their Sri Lankan
counterparts on building tourism between the two countries based on shared religious
heritage. Madhya Pradesh CM Shivraj Chauhan in June 2013 stated he was working with Sri
Lankan authorities to build a temple dedicated to the Hindu deity Sita in Nuwara Eliya.

India-Sri Lanka border crossings

Only land border India and Sri Lanka have is in Talaimannar on a Ram Sethu sand dune.

Security

India and Sri Lanka signed an agreement allowing for the transfer of criminals serving prison
sentences in the other country to be repatriated to serve the balance of their sentences in their
home country. Sentenced persons from Kerala and Tamil Nadu have been transferred under
the agreement from Sri Lanka to India.

There are areas of cooperation where people to people contacts are focused. Sri Lanka and
India has friendly relations through people's support also. It was seen that A. T. Ariyaratne in
Sri Lanka helped in spreading non violence and community service activities on Gandhian
philosophy.

Alleged RAW interference

In 2015 the Sri Lankan Government expelled country's RAW agent played in role of uniting
the opposition for the 2015 presidential election. In October 2018, President Sirisena alleged
that Indian RAW was plotting his assassination.

He made this comment in the cabinet meeting, after CID of Sri Lanka Police arrested an
Indian national in September for the alleged assassination of Sirisena and former Defence
Secretary Gotabaya Rajapaksa. After President Sirisena's comment on this, the media
reported that the Indian High Commissioner met with the president, and Indian Prime
Minister Narendra Modi had a telephone conversation with the president.

3.TRADE RELATION

History

Economic relations between India and Sri Lanka have a long history dating back to centuries.
The formal economic relations in the post independent era began in 1968 with the setting up
of the Indo-Lanka Joint Committee on Economic Cooperation (ILJCEC), which aimed at
increasing economic cooperation in trade, industry, agriculture and tourism. This joint
committee was later transformed into a Joint Commission for Economics, Trade and
Technical Cooperation (JCETT) consisting of two layers: the Commission of Ministers of
Foreign Affairs and a sub-committee consisting of senior officials. An additional sub-
committee was added in 1992 to cover Culture, Education, and Social Activities, while a
third sub-committee was added in 1993 named Sub-Committee on Science and Technology.
The sub-committee on economic affairs was renamed as the sub-committee on Trade,
Finance and Investment. The JCEET was a useful instrument for the officials of the two
countries to meet and discuss trade and economic issues.

Economic and political relations between the two countries were dependent on the political
and economic policies pursued by the two countries. For example, the economic and political
relations between India and Sri Lanka were turbulent during the latter part of the 1970s and
early 1980s as that was a time that Sri Lanka introduced liberal market policies but India still
pursued an import-substitution policy. In addition, India maintained much closer economic
and political cooperation with the Soviet Union while Sri Lanka opted for ideological bias
towards the West.

ISFTA

“The ISFTA has triggered regular meetings between trade officials of both countries; they
have provided a forum to discuss various trade and institutional issues. Thus, it is clear that
substantial groundwork had been done by both countries to build an institutional framework
to strengthen economic cooperation. It would be beneficial to review, consolidate and expand
the functioning of such existing mechanisms and streamline their activities to meet the
objectives of both nations under the proposed CEPA. (Source: Prof: Upali Wickramasinghe,
A Survey of progress and Lessons for the Future-,EC-SL Trade Development Project Paper)

Spurred by the implementation of ISFTA in 2000, exports from Sri Lanka to India have
increased rapidly over the years. Though the ISFTA has facilitated to further strengthen the
trade and economic relations between the two countries, economic asymmetries of the two
countries have reflected in the overall trade. India being a resourceful country with highly
developed industries and secured market posses comparative trade advantages over Sri
Lanka. On the other hand, Sri Lanka with limited basket of products offers without scale
advantages finds it difficult to avail the maximum advantage of the ISFTA (See Trade
Statistics section)

With the objective of further enhancing the current economic relations, the Governments of
Sri Lanka and India, at the highest political level, have agreed to conclude a Comprehensive
Economic Partnership Agreement (CEPA). The CEPA aims at promoting trade in both goods
and services, facilitating greater investment flows and enhancing mutual cooperation in the
sphere of overall economic relations. The existing Indo-Sri Lanka Free Trade Agreement
(ISFTA) will become the ace Goods Chaptera of the CEPA, with further improvements.

To asses the current status of the bilateral relations and make recommendations on how to
move the two economies towards greater economic integration through the conclusion of a
CEPA, the then Prime Ministers of Sri Lanka and India in 2002 appointed a Joint Study
Group (JSG). The (JSG), co-chaired by Mr. Rakesh Mohan of the Reserve Bank of India and
Mr. Ken Balendra of Sri Lanka, concluded in 2003 that the accomplishment of the CEPA
would take the two countries to a qualitatively new level of engagement by intensifying and
deepening bilateral economic interaction.
The JSG recommendations include improvements to the current ISFTA, binding
commitments in identified sectors in services, facilitation of investment flows and enhanced
cooperation in the fields of education, culture, ocean resources exploration, health and
medicine, agriculture, ferry services, development of railway etc. However, the two sides
agreed at the Commerce Secretaries level meeting in August 2004 to refer to the JSG report
as a useful reference document in the CEPA process, as it contains valuable
recommendations, but not as the basis for Negotiations. The two sides also agreed on two
fundamental principles viz, to take in to account asymmetries of the two economies in all
elements of negotiations and progressive and sequencing of liberalization in the Services
sector.

The binding commitments on trade in goods under CEPA would primarily relate to (a)
reducing the size of the negative lists, in the current FTA, (b) more flexibility on rules of
origin criteria, (c) elimination of non-tariff barriers, and (d) mutual recognition of products
standards and conformity assessment.

As regards the binding commitments on trade in services, the bilateral negotiations will cover
pre-identified service sectors, using the WTO General Agreement on Trade in Services
(GATS) as the negotiating framework and its positive list approach. The service sectors that
are being considered by Sri Lanka for liberalization at the initial stage include information
and communication technology, tourism & leisure industry, financial services and transport
& logistic services. It is proposed that high priority be given to the infrastructure
development and the future growth areas which will facilitate making Sri Lanka a service-
hub in the region of South Asia. Sri Lanka would not consider any binding commitments on
liberalisation of professional services (i.e., medical, legal, architecture, accounting etc.,) until
proper regulatory mechanisms are put in place in respect of such service sectors.
 4. FREE TRADE AGREEMENT

INDO – SRILANKA FREE TRADE AGREEMENT

The Indo-Sri Lanka Free Trade Agreement (ISFTA), which was signed on 28th December
1998 and entered into force with effect from 1st March 2000, provides duty free concessions
to a wide range of products traded between the two countries. Sri Lanka’s final tariff
liberalization commitment under ISFTA came into effect since November 2008 and with this
completion of the commitment, the ISFTA which came into effect from March 2000 has been
fully implemented. However, Sri Lanka has already got a fully duty free access to the vast
Indian market under the ISFTA since the end of March 2003. Thus, the entrepreneurs based
in Sri Lanka can now export more than 4000 product lines to the Indian market on duty free
basis.

Sri Lanka’s export to India increased from US $ 173 million during January to May in 2010
to US $ 219 million during the corresponding period of 2011 registering a 26.6% growth.
This increase was mainly due to a significant increase in exports such as insulated wiring sets
and cables, bottle coolers, petroleum products, cocoa products, technically specified natural
rubber, marble, furniture, MDF boards, apparel & clothing accessories, glass products, rubber
gloves, nutmeg, mace etc. during January to May in 2011 when compare to the same period
in 2010.

However, exports of certain products such as cloves, pepper, natural rubber in form of
smoked sheets, copper wires, animal feed, refined copper, new pneumatic tyres etc. have
recorded decrease during January to May in 2011 compared to the same period in 2010. It is
important to note that most of the products have been exported to India on duty free basis
under the ISFTA during January to May in 2011.

The Department of Commerce has issued 4,371 Certificates of Origin under the ISFTA
during January to May 2011 when compared to 4,112 Certificates of Origin under the ISFTA
issued during the same period in 2010.

An informal discussion with the India officials on the ISFTA implementation issues were
held in New Delhi in November 2010 and subsequently in Colombo in December 2010.
During the discussions, both sides emphasized the importance of commencing bilateral
discussions between the two countries on the ISFTA implementation issues after a lapse of
two years. Both sides expressed the importance of giving utmost attention to solve ISFTA
implementation issues put forward by both sides, at the earliest.
More Comprehensive Economic Cooperation Arrangements with India

Sri Lanka is in the process of negotiating more comprehensive economic cooperation

arrangement with India in order to strengthen the present bilateral economic relations. While
the present Free Trade Agreement between the two countries deals with trade in goods, the
proposed arrangement will encompass trade in Services, Investment and Economic
cooperation. The formal discussions on the proposed arrangement have not taken place since
the conclusion of third round of Trade Negotiating Committee meeting held in July 2008.

The two sides have had three rounds of negotiations at Commerce Secretary Level and
thirteen rounds of Technical Level Negotiations since negotiations on the proposed
comprehensive arrangement with India were launched in 2005. Both parties were able to
reach a reasonable understanding through these negotiations on the level of market access
commitments in the area of trade in goods, trade in services, investment and economic
cooperation.

However, the process of negotiations for proposed Agreement was suspended in 2008 due to
the concerns expressed by some parties on the possible adverse effects. Later in 2010, an
extensive consultation process was started with all the stakeholders in order to address those
concerns. In this regard, the first consultative meeting, chaired by the Hon. Minister of
Industry and Commerce was held on 27th July 2010 to assess the perspectives of the chamber
representatives followed by a series of such meetings.

During bilateral consultations between Sri Lanka and India held during the latter part of
2010, both sides agreed to re-start formal negotiations based on a new draft prepared by Sri
Lankan side. Accordingly, in February 2011, an Inter-Agency-Committee was established
with the approval of the Cabinet to look into the matters pertaining to the proposed
Agreement with India and prepare a draft text. Presently, the IAC is in the process of
preparing a draft to be presented to the Indian side for future negotiations.
 5. INDIA-SRILANKA: IMPORT – EXPORT

India is Sri Lanka’s largest trading partner globally, while Sri Lanka is India’s second largest
trading partner in the SAARC. It is the number one source of supplies accounting for twenty
percent of Sri Lanka’s total imports and third largest export destination for Sri Lankan
products absorbing six percent of total exports. Among tourists, Indian visitors make the
largest single group having a share of twenty seven percent of total arrivals. In the investment
field, India is among the top five foreign investors in Sri Lanka. Trade between Sri Lanka and
India has grown rapidly after the entry into force of the Indo-Sri Lanka Free Trade
Agreement in March 2000. The value of bilateral trade increased fromUS$658 million in
2000 to US$ 3.6 billion in 2013.

Sri Lanka’s exports growth has largely been under the ISFTA, whereas India’s exports have
remained mostly outside the ISFTA. In average, over 70% of Sri Lanka’s exports to India
continue to be under the ISFTA, while India’s exports to Sri Lanka under the ISFTA remains
only around 25%. Sri Lanka could export more than 4000 product lines to the Indian market
on duty free basis. The noteworthy aspect of the growth of exports under the agreement is the
broader product diversification, which took place following the FTA.

Major exports from Sri Lanka under the ISFTA includes; apparel, furniture, MDF boards,
glass bottles, processed meat products, poultry feed, insulated wires & cables, bottle coolers,
pneumatic tires,  tiles & ceramics products, rubber gloves, electrical panel boards &
enclosures, machinery parts, food preparations and spices etc.

 Table – 1: Trade between India and SriLanka : 2000 – 2013  (Values in US $ Millions)

Year Exports Imports Total Trade Balance of Trade

2000 55.65 600.12 655.77 -544.47
2001 70.12 601.50 671.62 -531.38
2002 168.86 834.70 1,003.56 -665.84
2003 241.14 1,076.17 1,317.31 -835.03
2004 385.50 1,358.01 1,743.51 -972.51
2005 559.26 1,440.41 1,999.67 -881.15
2006 494.06 1,822.07 2,316.13 -1,328.01
2007 516.40 2,785.04 3,301.44 -2,268.64
2008 418.08 3,006.93 3,425.01 -2,588.85
2009 324.87 1,709.93 2,034.8 -1,385.06
2010 466.60 2,546.23 3,012.83 -2,079.63
2011 521.65 4,338.04 4,859.69 -3,816.39
2012 566.37 3,517.23 4,083.60 -3,517.23
2013 543.37 3,092.67 3,636.04 -2,549.30

Table -2: Major Exports to India in 2013                                                      

Product
Value in US$ Mn
Spices 89.11

Natural Rubber & Rubber products 22.07

Poultry Feed 38.38

Insulated wires, cables etc 33.87

Copper & Copper based products 7.54

Refrigerators, freezers and other refrigerating 6.65

equipment  & Machinery

Paper & Paper products 24.42

Ships, Boats and floating structures 51.83

Fiber board of wood 9.91

Furniture, bedding, mattress etc 15.92

Apparel 34.26
Table – 3: Major imports from India in 2013

Product
Value in US$ Mn

Motor Vehicles 383.03

Mineral fuels & oils 403.02

Cotton 191.96

Pharmaceutical products 164.54

Knitted and crocheted fabric 93.87

Plastic articles 84.36

Iron & Steel 209.29

Chemicals 55.83

Cement 181.40

Sugar 77.74

India and Sri Lanka also share the membership in other regional and multilateral trading
arrangements namely; Asia Pacific Trade Agreement (APTA), South Asia Free Trade
Agreement (SAFTA) in the SAARC context, BIMSTEC (Bay of Bengal Initiative for
Multicultural Technical and Economic Cooperation), Global System of Trade Preferences
(GSTP) and the World Trade Origination (WTO) which were influential in strengthening and
further advancing trade and economic ties. To our mutual benefit India is one of the leading
investors in Sri Lanka with the presence of major Indian companies including:

• CEAT Limited
• Gujarat Glass Limited
• Indian Oil Corporation Limited
• Neelkamal Plastics Limited
• Gujarat Ambuja Limited
• Bharti Airtel Limited
• National Thermal Power Corporation
• Indian Hotels Co. Limited
• State Bank of India
• Indian Bank
• ICICI bank
• Indian Overseas Bank
• Larsen & Toubro Limited
• Carin India Limited
• Mphasis

With the entry into force of the Indo- Sri Lanka Free Trade Agreement, the foreign direct
investment flow has taken place both-ways. The Sri Lankan investors in India include;•
Aitken Spence Hotel Managements

• Bank of Ceylon
• Brandix India Apparel City
• Damro Furniture (Pvt) Ltd
• DSI Tyre India (Pvt) Ltd
• Hatton National bank

• hSenid Software (India) Pvt. Ltd

• John Keells Logistics India Pvt Ltd
• Multilac
• Ritzbury India Pvt Ltd
• Regency International Clothing P Ltd
• Sri Lankan Airlines Ltd
• Serene Holidays Pvt Ltd (John Keells Group Company)

 
 6. GDP OF SRILANKA AND INDIA

SRILANKA

With an economy worth $93.45 billion $298.310 billion PPP] and a per capita GDP of about
$4,310, $13,480 PPP as of 2018 Sri Lanka has mostly had strong growth rates in recent years.
The Sri Lankan economy has seen robust annual growth at 6.4 percent over the course of the
2003-2012 period, well above its regional peers. In GDP per capita terms, it is ahead of other
countries in the South Asian region. The main economic sectors of the country are tourism,
tea export, apparel, textile, rice production and other agricultural products. In addition to
these economic sectors, overseas employment contributes highly in foreign exchange: 90% of
expatriate Sri Lankans reside in the Middle East.

Sri Lanka has met the Millennium Development Goal (MDG) target of halving extreme
poverty and is on track to meet most of the other MDGs, outperforming other South Asian
countries. Sri Lanka experienced a major decline in poverty between 2002 and 2009 – from
23 percent to 9 percent of the population. Despite this pockets of poverty continue to exist.
An estimated 9 percent of Sri Lankans who are no longer classified as poor live within 20
percent of the poverty line and are, thus, vulnerable to shocks which could cause them to fall
back into poverty. Since the end of the three-decade civil war, Sri Lanka has begun focusing
on long-term strategic and structural development challenges as it strives to transition to an
upper middle income country. Sri Lanka has one of the lowest tax-to-GDP ratios in the
world, and creating jobs for the bottom 40% has become a challenge. Sri Lanka also faces a
challenges in social inclusion, governance and sustainability.

Macro-economic trend

The chart below summarizes the trend of Sri Lanka's gross domestic product at market prices.
[40]
by the International Monetary Fund with figures in millions of Sri Lankan Rupees.

Year Gross Domestic Product US Dollar Exchange

1980 66,167 16.53 Sri Lankan Rupees
1985 162,375 27.20 Sri Lankan Rupees
1990 321,784 40.06 Sri Lankan Rupees
1995 667,772 51.25 Sri Lankan Rupees
2000 1,257,637 77.00 Sri Lankan Rupees
2005 2,363,669 100.52 Sri Lankan Rupees
2016 6,718,000 145.00 Sri Lankan Rupees

For purchasing power parity comparisons, the US Dollar is exchanged at 113.4 Sri Lankan
Rupees only.
The following table shows the main economic indicators in 1980–2017.

198 198 199 199 200 200 200 200 200 200 201 201 201 201 201 201 201 201
Year
0 5 0 5 0 5 6 7 8 9 0 1 2 3 4 5 6 7
27. 56. 83.
GDP in 16.5 37.7 112. 124. 136. 147. 154. 168. 186. 207. 218. 233. 247. 261. 274.
43 28 03
$ 8 4 59 94 99 99 39 80 76 60 11 01 37 72 72
Bln Bln Bln
(PPP) Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln. Bln.
. . .
GDP
per
1,13 1,7 2,32 3,2 4,4 5,73 6,31 6,87 7,30 7,54 8,16 8,94 10,1 10,5 11,2 11,7 12,3 12,8
capita
5 72 0 57 96 9 9 4 9 0 4 9 64 99 20 98 43 11
in $
(PPP)
GDP
5.8  5.0  6.2  6.1  8.4  6.2  7.7  6.8  6.0  3.5  8.0  8.4  9.1  3.4  5.0  5.0  4.5  3.1 
growth
% % % % % % % % % % % % % % % % % %
(real)
Inflatio
n
26.1 1.5  21.5  7.7  6.2  11.0 10.0 15.8  9.6  3.4  6.3  6.7  7.5  6.9  2.8  2.2  4.0  6.5 
(in
% % % % % % % % % % % % % % % % % %
Percent
)
Govern
ment
debt 82  80  82  79  77  74  71  75  72  71  70  72  72  78  80  79 
... ...
(Percen % % % % % % % % % % % % % % % %
tage of
GDP)

In 1977, Colombo abandoned statist economic policies and its import substitution trade
policy for market-oriented policies and export-oriented trade.

Sri Lanka's most dynamic industries now are food processing, textiles and apparel, food and
beverages, telecommunications, and insurance and banking.

By 1996 plantation crops made up only 20% of exports (compared with 93% in 1970), while
textiles and garments accounted for 63%. GDP grew at an annual average rate of 5.5%
throughout the 1990s until a drought and a deteriorating security situation lowered growth to
3.8% in 1996.

The economy rebounded in 1997–98 with growth of 6.4% and 4.7% – but slowed to 3.7% in
1999. For the next round of reforms, the central bank of Sri Lanka recommends that Colombo
expand market mechanisms in nonplantation agriculture, dismantle the government's
monopoly on wheat imports, and promote more competition in the financial sector.

Pre 2009 there was a continuing cloud over the economy the civil war and fighting between
the Government of Sri Lanka and LTTE. However the war ended with a resounding victory
for the Sri Lankan Government on 19 May 2009 with the total elimination of LTTE.

GDP OF INDIA
The economy of India is characterized as a developing market economy. It is the world's
fifth-largest economy by nominal GDP and the third-largest by purchasing power parity
(PPP). According to the IMF, on a per capita income basis, India ranked 142nd by GDP
(nominal) and 119th by GDP (PPP) per capita in 2018. Post 1991 economic liberalisation, the
free market oriented reforms propelled India to achieve 6% to 7% annual average GDP
growth. From 2014 to 2019, India's economy was the world's fastest growing major
economy, surpassing China.

The long-term growth perspective of the Indian economy is positive due to its young
population, English proficiency, corresponding low dependency ratio, healthy household
savings, and investment rates, and increasing integration into the global economy. India
topped the World Bank's growth outlook for the first time in fiscal year 2015–16, during
which the economy grew 7.6%. Despite previous reforms, economic growth is still
significantly slowed by bureaucracy, poor infrastructure, inflexible labor laws, and complex
land acquisition process. Nearly 60% of India’s GDP is driven by domestic private
consumption and continues to remain the world's sixth-largest consumer market. In 2018,
India was the world's tenth-largest importer and the nineteenth-largest exporter. India has
been a member of World Trade Organization since 1 January 1995. It ranks 77th on Ease of
doing business index and 58th on Global Competitiveness Report. With 510-million-workers,
the Indian labour force is the world's second-largest as of 2018.

The following table shows the main economic indicators in 1980–2018. Inflation under 5% is
in green.

Yea GDP GDP per Share of GDP Inflation Government

r (in bil. US$ capita world growth rate debt
PPP) (in US$ (GDP PPP (real) (in (in % of GDP)
PPP) in %) Percent)
198 382.0 557 2.89 % 5.3 % 11.3 % n/a
0
198 442.7 632 3.01 % 6.0 % 12.7 % n/a
1
198 486.5 680 3.11 % 3.5 % 7.7 % n/a
2
198 542.6 742 3.25 % 7.3 % 12.6 % n/a
3
198 583.3 781 3.23 % 3.8 % 6.5 % n/a
4
198 633.6 830 3.29 % 5.3 % 6.3 % n/a
5
198 677.3 869 3.33 % 4.8 % 8.9 % n/a
6
198 722.1 907 3.33 % 4.0 % 9.1 % n/a
7
198 819.3 1,007 3.49 % 9.6 % 7.2 % n/a
8
198 901.8 1,086 3.57 % 5.9 % 4.6 % n/a
9
199 986.9 1,164 3.62 % 5.5 % 11.2 % n/a
0
199 1,030.6 1,193 3.57 % 1.1 % 13.5 % 75.3 %
1
199 1,111.8 1,261 3.38 % 5.5 % 9.9 % 77.4 %
2
199 1,192.4 1,323 3.48 % 4.8 % 7.3 % 77.0 %
3
199 1,298.8 1,413 3.60 % 6.7 % 10.3 % 73.5 %
4
199 1,426.3 1,522 3.74 % 7.6 % 10.0 % 69.7 %
5
199 1,562.1 1,636 3.87 % 7.6 % 9.4 % 66.0 %
6
199 1,653.1 1,698 3.87 % 4.1 % 6.8 % 67.8 %
7
199 1,774.4 1,789 4.00 % 6.2 % 13.1 % 68.1 %
8
199 1,954.0 1,935 4.19 % 8.5 % 5.7 % 70.0 %
9
200 2,077.9 2,018 4.16 % 4.0 % 5.6 % 73.6 %
0
200 2,230.4 2,130 4.26 % 4.9 % 4.3 % 78.7 %
1
200 2,353.1 2,210 4.30 % 3.9 % 4.0 % 82.9 %
2
200 2,590.7 2,395 4.46 % 7.9 % 3.9 % 84.2 %
3
200 2,870.8 2,612 4.58 % 7.8 % 3.8 % 83.3 %
4
200 3,238.3 2,901 4.77 % 9.3 % 4.4 % 80.9 %
5
200 3,647.0 3,218 4.95 % 9.3 % 6.7 % 77.1 %
6
200 4,111.1 3,574 5.16 % 9.8 % 6.2 % 74.0 %
7
200 4,354.8 3,731 5.21 % 3.9 % 9.1 % 74.5 %
8
200 4,759.9 4,020 5.68 % 8.5 % 11.0 % 72.5 %
9
201 5,312.4 4,425 5.95 % 10.3 % 9.5 % 67.5 %
0
201 5,782.0 4,750 6.09 % 6.6 % 9.5 % 69.6 %
1
201 6,214.5 5,037 6.23 % 5.5 % 10.0 % 69.1 %
2
201 6,727.3 5,383 6.41 % 6.4 % 9.4 % 68.5 %
3
201 7,362.5 5,814 6.65 % 7.4 % 5.8 % 67.8 %
4
201 8,036.3 6,264 6.94 % 8.0 % 4.9 % 69.9 %
 5
201 8,787.9 6,761 7.27 % 8.2 % 4.5 % 69.0 %
6
201 9,596.8 7,287 7.52 % 7.2 % 3.6 % 69.8 %
7
201 10,505.2 7,874 7.77 % 7.1 % 3.5 % 69.8 %
8

7. INFLATION, UNEMPLOYMENT AND POVERTY RATE

INFLATION RATE IN INIDIA:
India's retail price inflation rate stood at 3.15 percent year-on-year in July 2019, little-
changed from the previous month's 3.18 percent and slightly below market expectations of
3.20 percent. Inflation remained below the Reserve Bank of India's medium-term target of 4
percent for the twelfth consecutive month, despite recent interest rate cuts. Inflation Rate in
India averaged 6.05 percent from 2012 until 2019, reaching an all time high of 12.17 percent
in November of 2013 and a record low of 1.54 percent in June of 2017.
India's retail price inflation rate stood at 3.15 percent year-on-year in July 2019, little-
changed from the previous month's 3.18 percent and slightly below market expectations of
3.20 percent. Inflation remained below the Reserve Bank of India's medium-term target of 4
percent for the twelfth consecutive month, despite recent interest rate cuts.

Food prices rose 2.36 percent from a year earlier in July, the biggest gain since June 2018.
Also, the food & beverages index went up 2.33 percent, with main upward pressure coming
from: meat & fish (9.05 percent); vegetables (2.82 percent); non-alcoholic beverages (3.38
percent); prepared meals, snacks, sweets etc. (2.56 percent); pulses & products (6.82
percent); egg (0.57 percent); cereals & products (1.31 percent); spices (2.02 percent); oils &
fats (0.91 percent); and milk & products (0.98 percent). By contrast, fruits prices dropped
0.86 percent and sugar & confectionery costs fell 2.11 percent.

Among non-food products, prices increased for housing (4.87 percent); miscellaneous (4.65
percent); pan, tobacco and intoxicants (4.89 percent); and clothing and footwear (1.65
percent). Fuel & light prices were 0.36 percent lower.
The corresponding provisional inflation rates for rural and urban areas were 2.19 percent and
4.22 percent, compared with June's of 2.21 percent and 4.33 percent respectively.

INFLATION RATE IN SRILANKA:

Inflation rate in Sri Lanka rose to 3.4 percent year-on-year in August of 2019, up from a 3.3
percent increase in the previous month, as non-food prices rose faster (6.2 percent vs 5.9
percent in July) Among non-food, cost grew for housing & utilities (3.9 percent vs 3.8
percent); transport (6.9 percent vs 5.4 percent); clothing & footwear (8.8 percent vs 8.2
percent) and recreation & culture (5.4 percent vs 3.6 percent). Meanwhile, food and non-
alcoholic beverages cost dropped further (-2.8 percent vs -2.6 percent). On a monthly basis,
consumer prices went up 0.1 percent, rebounding from a 0.2 percent drop in the prior month.
Inflation Rate in Sri Lanka averaged 9.36 percent from 1986 until 2019, reaching an all time
high of 28.30 percent in June of 2008 and a record low of -0.90 percent in March of 1995. In
Sri Lanka, the Consumer Price Index (CPI) is composed of two main groups: Food items (41
percent) and Non-food items (59 percent). Food items are mainly composed of: bread and
cereals (7.9 percent), fish and sea food (6 percent) and vegetables (5.7 percent). The most
important non-food items are housing water, electricity, gas and other fuels (23.7 percent),
transport (12.3 percent), and restaurants and hotels (5.8 percent).

UNEMPLOYMENT RATE IN SRILANKA

Sri Lanka's Unemployment Rate increased to 4.70 % in Mar 2019, from the previously
reported number of 4.60 % in Dec 2018. Sri Lanka's Unemployment Rate is updated
quarterly, available from Jun 2012 to Mar 2019, with an average rate of 4.40 %. The data
reached an all-time high of 5.10 % in Sep 2015 and a record low of 3.90 % in Dec 2012. The
data is reported by reported by Department of Census and Statistics.
In the latest reports, Sri Lanka's Population reached 21.67 million people in Jun 2018. The
country's Labour Force Participation Rate increased to 52.60 % in Mar 2019

Demographic and Labour Market Last Previous Frequenc Range

y
21.7 21.4 Yearly 1948 - 2018

2018 2017 Updated on

Population (Person mn) yearly 1948 - 2018 2018-12-12
Labour Force Participation Rate (%) 52.6 52.2 Quarterly Jun 2012 -
quarterly Jun 2012 - Mar 2019 Mar 2019
Mar 2019 Dec 2018
Updated on
2019-06-28
Employed Persons (Person) quarterly Jun 8,182,970. 8,088,448. Quarterly Jun 2012 -
2012 - Mar 2019 000 000 Mar 2019

Mar 2019 Dec 2018 Updated on

2019-07-02
Labour Productivity Growth (%) 0.92 4.45 Quarterly Jun 2013 -
quarterly Jun 2013 - Mar 2019 Mar 2019
Mar 2019 Dec 2018
Updated on
2019-07-02
Forecast: Population (Person mn) yearly 23.209 22.949 Yearly 1980 - 2024
1980 - 2024
2024 2023 Updated on
2019-04-09
Forecast: Unemployment Rate (%) 4.400 4.400 Yearly 1990 - 2024
yearly 1990 - 2024
2024 2023 Updated on
2019-04-09
Population: Mid Year (Person th) yearly 21,67- 21,44- Yearly 1948 - 2018
1948 - 2018 0.000 4.000
Updated on
2018 2017 2019-06-21
Average Daily Wage: Rubber Planting 1,317.000 1,271.000 Monthly Jan 1984 -
(LKR) monthly Jan 1984 - Mar 2019 Mar 2019
Mar 2019 Feb 2019
Updated on
2019-08-02

UNEMPLOYMENT RATE IN INDIA

The unemployment rate in India stood at 6 percent in the 2017-18 fiscal year, the Periodic
Labour Force Survey (PLFS) of the National Sample Survey Office (NSSO), showed.
Unemployment Rate in India averaged 4.32 percent from 1983 until 2018, reaching an all
time high of 8.30 percent in 1983 and a record low of 3.53 percent in 2011.

The unemployment rate measures the number of people aged 15 and over actively looking for
a job as a percentage of the labour force. This page provides - India Unemployment Rate -
actual values, historical data, forecast, chart, statistics, economic calendar and news. India
Unemployment Rate - actual data, historical chart and calendar of releases - was last updated
on September of 2019.

Actual Previous Highest Lowest Dates

Unit Frequency
6.00 5.00 8.30 3.53 1983 - 2018 percent Yearly
 8.FDI FLOW IN INDIA AND SRILANKA

INDIA
Foreign direct investment (FDI) in India is a major monetary source for economic
development in India. Foreign companies invest directly in fast growing private Indian
businesses to take benefits of cheaper wages and changing business environment of India.
Economic liberalisation started in India in wake of the 1991 economic crisis and since then
FDI has steadily increased in India, which subsequently generated more than one crore (10
million) jobs. According to the Financial Times, in 2015 India overtook China and the United
States as the top destination for the Foreign Direct Investment. In first half of the 2015, India
attracted investment of $31 billion compared to $28 billion and $27 billion of China and the
US respectively.

Routes

There are two routes by which India gets FDI.

1. Automatic route: By this route FDI is allowed without prior approval by Government or
Reserve Bank of India.

2. Government route: Prior approval by government is needed via this route. The application
needs to be made through Foreign Investment Facilitation Portal, which will facilitate single
window clearance of FDI application under Approval Route. The application will be
forwarded to the respective ministries which will act on the application as per the standard
operating procedure. Foreign Investment Promotion Board (FIPB) which was the responsible
agency to oversee this route was abolished on May 24, 2017. It held its last meeting on 17th
April, which was the 245th meeting of the Board.On 24 May 2017, Foreign Investment
Promotion Board was scrapped by the Union Government.Henceforth, the work relating to
processing of applications for FDI and approval of the Government thereon under the extant
FDI Policy and FEMA, shall now be handled by the concerned Ministries/Departments in
consultation with the Department for Promotion of Industry and Internal Trade(DPIIT) ,
Ministry of Commerce, which will also issue the Standard Operating Procedure (SOP) for
processing of applications and decision of the Government under the extant FDI policy.

Government initiatives

The Government of India has amended FDI policy to increase FDI inflow. In 2014, the
government increased foreign investment upper limit from 26% to 49% in insurance sector. It
also launched Make in India initiative in September 2014 under which FDI policy for 25
sectors was liberalised further.As of April 2015, FDI inflow in India increased by 48% since
the launch of "Make in India" initiative.

India was ranking 15th in the world in 2013 in terms of FDI inflow, it rose up to 9th position
in 2014 while in 2015 India became top destination for foreign direct investment. The
Department for Promotion of Industry and Internal Trade and Invest India has developed the
India Investment Grid (IIG) which provides a pan-India database of projects from Indian
promoters for promoting and facilitating foreign investments.

Sectors

During 2014–16, India received most of its FDI from Mauritius, Singapore, Netherlands,
Japan and the US. On 25 September 2014, Government of India launched Make in India
initiative in which policy statement on 25 sectors were released with relaxed norms on each
sector.Following are some of major sectors for Foreign Direct Investment.

Infrastructure

10% of India's GDP is based on construction activity. Indian government has invested $1
trillion on infrastructure from 2012–2017. 40% of this $1 trillion had to be funded by private
sector. 100% FDI under automatic route is permitted in construction sector for cities and
townships

Automotive

FDI in automotive sector was increased by 89% between April 2014 to February 2015. India
is 7th largest producer of vehicles in the world with 25.5 million vehicles annually. 100%
FDI is permitted in this sector via automatic route. Automobiles shares 7% of the India's
GDP.

Pharmaceuticals

Indian pharmaceutical market is 3rd largest in terms of volume and 13th largest in terms of
value. Indian pharma industry is expected to grow at 20% compound annual growth rate from
2015 to 2020.74% FDI is permitted in this sector.

Service

FDI in service sector was increased by 46% in 2014–15. It is US $1.88 billion in 2017.
Service sector includes banking, insurance, outsourcing, research & development, courier and
technology testing.FDI limit in insurance sector was raised from 26% to 49% in 2014.

Railways

100% FDI is allowed under automatic route in most of areas of railway, other than the
operations, like High speed train, railway electrification, passenger terminal, mass rapid
transport systems etc. Mumbai-Ahemdabad high speed corridor project is single largest
railway project in India, other being CSTM-Panvel suburban corridor. Foreign investment
more than ₹90,000 crore (US$13 billion) is expected in these projects so far.

Chemicals

Chemical industry of India earned revenue of $155–160 billion in 2013. 100% FDI is allowed
in Chemical sector under automatic route. Except Hydrocynic acid, Phosgene, Isocynates and
their derivatives, production of all other chemicals is de-licensed in India. India's share in
global specialty chemical industry is expected to rise from 2.8% in 2013 to 6–7% in 2023.

Textile

Textile is one major contributor to India's export. Nearly 11% of India's total export is textile.
This sector has attracted about $1647 million from April 2000 to May 2015. 100% FDI is
allowed under automatic route. During year 2013–14, FDI in textile sector was increased by
91%. Indian textile industry is expected reach up to $141 billion till 2021.

Airlines
Foreigner investment in a scheduled or regional air transport service or domestic scheduled
passenger airline is permitted to 100%.

SRILANKA

Foreign Direct Investment in Sri Lanka increased by 167 USD Million in the first quarter of
2019. Foreign Direct Investment in Sri Lanka averaged 161.44 USD Million from 2001 until
2019, reaching an all time high of 961 USD Million in the fourth quarter of 2017 and a record
low of 20 USD Million in the second quarter of 2001.
 HISTORICAL DATA ANALYSIS:
Foreign Direct Investment in Sri Lanka is expected to be 840.00 USD Million by the end of
this quarter, according to Trading Economics global macro models and analysts expectations.
Looking forward, we estimate Foreign Direct Investment in Sri Lanka to stand at 710.00 in
12 months time. In the long-term, the Sri Lanka Foreign Direct Investment - Net Inflows is
projected to trend around 820.00 USD Million in 2020, according to our econometric models.

FORECAST
9.CONCLUSION
10.BIBLIOGRAPHY

1. www.wikipedia.com
2. www.tradingeconomics.com
3. www.worldbank.org
4. www.indiatoday.in
5. www.google.co.in