The RBI Governor in a recent commentary on the website Project Syndicate wrote:
“India will run a current-account deficit for the foreseeable future, which means that it will need net foreign financing. The most stable form of financing, foreign direct investment, has the additional benefit of bringing in new technologies and methods. But India should not be railroaded into compromising its interests to attract FDI. For example, India’s requirements for patenting a medicine are perfectly reasonable, regardless of what the international drug companies say. But India must ensure that its policies are transparent, and that contractual disputes, especially over taxation, are quickly resolved. Efforts to ensure this have already begun."