They will have to find new market and market man. An aggressive export oriented with a please-all-policy will do lot of wonders for Indian industries. Specifically for Heavy Manufactures, they will have to invest heavily!
The paper highlights the export-diversifying impact of FDI in a developing country. FDI from a particular source may lead to export diversification of developing countries if it positively affects the export-intensity of the non-traditional export sector. Indirectly, FDI may encourage export diversification by spillover effects on the exportintensity of domestic firms in the non-traditional export sector. The empirical results forthe Indian economy in the post liberalization period show that FDI from U.S. has led to diversification of India`s exports both directly as well as indirectly. However, Japanese FDI has had no significant impact on India`s exports
