World Trade Organization WT/WGTI/W/105 26 June 2001 (01-3171) Working Group on the Relationship between Trade and Investment Original: English Communication from India The following communication, dated 13 June 2001, has been received from the Permanent Mission of India. _______________ FDI FLOWS AND TECHNOLOGY TRANSFER The possible role that foreign investment could play in aiding countries to achieve the goal of increased income, employment and output is now universally recognised. Almost every country is engaged in autonomously liberalizing their foreign investment regimes with a view to facilitating smooth flow of investment to their respective territories. However, there has been a general reluctance among countries to leave the scene completely open to foreign investors. While a large number of countries maintain formal screening procedures to regulate investment inflow, the reluctance to surrender all discretionary authority as regards ent