Growth and Composition of Foreign Institutional Investments (Fiis) in India Since 2000-01

Abstract

The present paper is an attempt to disclose the trend and progress offoreign institutional investments to India since the beginning oftwenty firstcentury. India presents a vast potential for overseas investment and is actively encouraging 1he entrance offoreign players into the market.Resultantly, India which is the second fastest growing economy after China, has lately been a major recipient offoreign institutional investor(FIi) funds driven by the strongjimdamentals and growth opportunities. FI/flows to India have steadily grown in importance. In India, duringthe year 2()00-2001 the equity and debt investment of F/I were Rs. 10,206.70 crore and -273.30 crore. The net investments of this year were Rs.9,933,.40crore. The Net Investments by Flls,_to India increased to Rs. 146,438.10 crore during 2010-JJ. Thus, during 2001-2011, the Fil netinvestments rose manyfolds. However, the Fil inflows decline to Rs.93725 crore in the year 20/ 1-12.