Volume : I, Issue : II, July - 2012

Foreign Direct Investment in India – An Explanatory Study

Dr. K. Madhu Babu

Abstract :

Foreign direct investments (FDI) have to play a new role particularly in present days in view of the liberalization measures adopted by the Indian Government. No period in the history of India’s industrial development, the Government has attached so much importance to the inflow of foreign capital than that of the present period. Particularly, the less developed countries have had to depend on financial and technical assistance from external sources. In the liberalized environment as economies become increasingly open, and trade between countries expand, financial transactions become global through financing trade of goods and services. Capital is the engine of economic development and this statement is gaining importance in the recent times. The present study is confined to the analysis of inflow of Foreign Direct investment. In this study the inflow of foreign direct investment has been studied for the period 1963-64 to 2009-10. For analytical convenience this period has been divided into two sub periods (1) The pre-liberalization period and (2) post-liberalization period. However, the focus of analysis is mostly on postliberalization period of 1991-2010 Therefore there is plenty of scope in food processing, agriculture services and agriculture machinery. However, FDI in this sector must be encouraged. Hence, efforts must be made to encourage the inflows of FDI go mostly into the priority sectors of India. If the liberalized policy towards FDI in India is accompanied by these efforts, the country will certainly go a long way in the process of achieving the goal of sustainable economic development in the near future

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Dr. K.Madhu Babu Foreign Direct Investment in India – An Explanatory Study International Journal of Scientific Research, Vol.I, Issue.II July 2012

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