Foreign Direct Investment: Features, Flow and Regulatory Mechanism in India

and improves standard of living of the people. Further, FDI flows played an important role in the early post-Independence Indian era via technology and capital from aoad. Since the availability of capital is scarce in many countries due to low rate of domestic savings, the importance of foreign investment is ever increasing. In the liberalized global environment as economies become increasingly open and trade among countries expand, financial transactions become global through financing trade of goods and services. Capital is the engine of economic development and hence both developed and developing countries are trying their best to undertake investment programmes by attracting foreign capital. In this context, it is essential to know the meaning, nature, features, flow and controlling mechanism of FDI in India. This paper throws light on the above aspects.