Foreign Direct Investment in India - An Overview

Abstract

Foreign Direct Investment is very important to _fill the saving investment gap and export import gap, for a country like India. FD/ helps to solve the problem of de_ficit of savings. Integration of International economies plays a very significant role in the development of all the economies. The present study is an attempt to .find out the opportunities and challenges for FD! inflows in India. In this paper. an analysis of inflows of FD/ in India was done. Suggestions for improving the inflow of FD! was also discussed. To ana(vze all these objectives, data has been collected from secondary sources like reports and publications of Govts., Reserve Bank of India, and World Investment Report. This research article is descriptive in nature. The study has shown greater opportunities for improving FD/ inflow because of factors such as strong education, high growth rate of GDP. cheap labour. availability of skilled workforce and improved infrastructure. In spite of all these opportunities FD/ inflow in India is not much due to the deterrents like corruption, low spending on Research & Development, i11frastructure bottlenecks, high tar(ff rate, and bureaucracy, less transparent FD/ policy, w!favorable regulatory and business environment. This paper will be bene_ficial for MN Cs to have knowledge of the opportunities available in India. This will also be helpful to policy makers to know the deterrents to FD/ inflows in India to enable them and bring about policy changes to attract more FD/ in/lows