Analysis of Inflows of Foreign Direct Investment in India

Abstract

Foreign Direct Investment is a pool which minimize the gap of saving - investment. It is very important to fill the saving investment gap and export import gap, for a country like India. The main problem of India is deficit of savings which can be reduce by FDI. Integration of International Economic plays a very noteworthy role in the economy’s development. Foreign investments is needed for the sustainable GDP growth rate. The present Indian government has launched Make in India program to boost manufacturing sector for increasing output and employment opportunities in the country. Steps have been taken to incentivize domestic and foreign investors. The present study has focused on the trends of FDI Flow in India during 2000-01 to 2014-15. A comparison of different countries contribution to FDI inflows was also analyzed. FDI inflows in different sectors as well as distribution of the foreign investment in different states was also studied. To analyze all these objectives, data has been collected through secondary sources like reports and publication of Govt., Ministry of Commerce and Industry, Department of Industrial Promotion and Policy, Government of India, Reserve Bank of India, and World Investment Report. This research article is descriptive in nature.