A Study of Flow and Trends of FDI in the Indian Economy

Abstract

One of the most striking developments during the last two decades is the spectacular growth of FDI in the global economic landscape. FDI provides a win – win situation to the host and the home countries. Both countries are directly interested in inviting FDI, because they benefit a lot from such type of investment. Even though India has been a latecomer to the FDI scene compared to other East Asian countries, its considerable market potential and a liberalized policy regime has sustained its attraction as a favourable destination for foreign investors. FDI helps in transferring of financial resources, technology and innovative and improved management techniques along with raising productivity. The objective of the present paper is to provide a broad outline on foreign direct investment with the context of different sectors. The present study has focused on the trends of FDI Flow in India during 2000-01 to 2013-14 (up to November, 2013). The study is based on Secondary data which have been collected through reports of the Ministry of Commerce and Industry, Department of Industrial Promotion and Policy, Government of India,Reserve Bank of India, and World Investment Report.