A Study on Foreign Direct Investment (FDI) Inflow in Textile Sector of India for the Period of 2000 to 2015

Abstract

FDI inflow is significantly grownup in various sectors of the Indian economy. Textile sector is an oldest and largest industry in India. In Indian economy, this sector forms a significant role for generating of employment and foreign exchange earnings. There have many opportunities for development and upgradation in this textile sector. There have been many provisions to technology upgradation or transformational change in technological ways through various innovative procedures from low technology to procure of high technology process and items for consumption in the textile sector in Indian developing economy. And highly diversified maketization and branded segment is very essential for this textile industry. The government of India is continuously restructured for raising this industry. Here the Government of India allowed 100% FDI inflow directly in Textile sector. The very deprived portion i.e. 0.65% of total FDI equity inflow is engaged in textile sector during the period from April 2000to June 2015. The present study investigate the trend and opportunity of FDI inflow in textile sector of India in terms of the invested amount in US$ based on the secondary data available during the financial year from 2000 to 2015. Here it is observed that the trend of FDI inflow in India is downward and the trend of FDI inflow in textile sector is downward and the co-relation among them is inadequately positive. Here, for upgrading of textile industry the necessity of FDI is essential which may be able to focus on employment and foreign exchange earnings.