To examine the determinants of FDI in China and India and the causes for their difference.

Abstract: This con-over aims to weigh the determinants of FDI in China and India and the causes for their dissimilarity. Ordinary meanest squares copys were foremost applied to analyse partially FDI determinants in China and India and then a panel axioms copy was plain to scrutinize the causes of the dissimilaritys. It was set that China’s FDI was unshaken by inflation occasion India’s FDI was influenced by infrastructure and employment candor. Infrastructure was the main conclude why India was dawdling following China. The results propose that India needs to upgrade its infrastructure and cause powerful employment policies in adjust to entice FDI. Key words: FDI, China, India, inflation, employment candor, infrastructure. 1. Introduction: Multinational Enterprises (MNEs), comprising 82,000 originator companies, 810,000 alien subsidiaries and an increase of inter-firm arrangements cosmos-peoplewide, keep played an material and growing role in today’s global administration (UNCTAD, 2009). The cosmos-people’s top MNEs are the main driver of interpolitical genesis. In 2008, they accounted for encircling 4% of cosmos-herd GDP[1] and had wholly property of $ 10.7 trillion, wholly alien sales of $ 5.2 trillion and industrious 8.9 darling herd (Table 1-1). Table 1-1:Snapshot of the World’s top 100 TNCs, 2006-07/08 Variable 2006 2007 2006-2007 % change 2008 2007-2008 % change