FOREIGN DIRECT INVESTMENT IN INDIA – A STUDY
Journal Title: IJAR-Indian Journal of Applied Research - Year 2018, Vol 8, Issue 2
Abstract
Foreign Direct Investment (FDI) plays a very important role in the development of the nation. It is very much vital in the case of underdeveloped and developing countries. A typical characteristic of these developing and underdeveloped economies is the fact that these economies do not have the needed level of savings and income in order to meet the required level of investment needed to sustain the growth of the economy. In such cases, foreign direct investment plays an important role of bridging the gap between the available resources or funds and the required resources or funds. It plays an important role in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in overall development of the economy. India after liberalizing and globalizing the economy to the outside world in 1991, there was a massive increase in the ow of foreign direct investment. The paper tries to examine the various set of factors which inuence the ow of FDI Identifying the causes for low inow and suggestive remedial measures to increase the ow of FDI in India with that of other developing nations in the world.
Authors and Affiliations
S. Sairam
Keywords
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