An Analytical study on Foreign Direct Investment in India

Abstract

In the era of modernization no country can fulfill its all needs independently. Every country has to depend on the other countries for fulfill the need of the people. Global integration plays a very crucial role in the economic development of each country. The only tool of tempting the global integration in economy is foreign direct investment. It makes a link between saving and investment. The problems of deficiency of saving are suffering by most of the developing countries, which can be improved by foreign direct investment. FDI is an important tool to reduce the deficit in balance of payment. Foreign capital also helps to cover the constraint of domestic saving and give opportunity to the better technology in the process of economic development. It also helps to encourage efficiency, effectiveness and productivity of the current production capacity and create new production opportunity. In the present paper researcher has made an attempt to (i) to analyze the trend of foreign direct investment in India. (ii) To study the inflow of FDI in India in some selected sector. (iii) To study the constraints of FDI in India.

Keywords: foreign direct investment, trends.