Sharma, Nishi creator text xu| 2014 continuing ng p.276-286. During the early phases of post-Independence, Government of India initiated different steps to ensure self-reliance of the economy through promoting import substitution. It stressed upon financing its current account deficit through international debts and other official assistance. But in 1990, policy makers realised the need to review their decisions particularly for circumscribing yoke international debts. To reanimate the fatally poised system Indian economy unclogged the route of foreign investment. Approval of foreign investment in the form of direct as well as institutional investment revamped entire financial system of India. However, there is a usual debate regarding the cause and effect relationship between foreign investment particularly institutional investments and performance of capital market, i.e. whether foreign institutional investments are allured by good stock return or the same leads to better performance of stock market. - Reproduced. Financial markets - India Foreign investment Indian Journal of Public Administration 180718