Impact of Foreign Direct Investment on Indian Economy

2019 ◽  
Author(s):  
Mushtaq Ahmad Bhat
2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.


Author(s):  
Rudresha C. E

International economic integration plays a significant role in the growth and development of any country, whether rich or poor. And foreign direct investment (FDI) is one of the major components in the process of achieving international economic integration in any economy. As is known, FDI serves as a link between investment and savings. This is true even in the case of India which is facing the deficit of savings and which can be addressed with the help of FDI. It (i.e., FDI) also helps in raising the growth and development of the economy. India is one of the leading markets at the global level. It has emerged as one of the attractive destinations in the world with a significant change in the inflow of FDI. The journey of FDI is very interesting with the introduction of liberalized policy through new economic policy 1991 and also other policy reforms of Government of India. It has witnessed a drastic change in the inflow and direction of foreign investment in Indian economy. In this backdrop, an attempt is made in this paper to examine country-wise, sector-wise and region-wise FDI inflows in Indian economy during last 19 years, 2000-01 to 2018-19. KEY WORDS: Economic Integration, Foreign Direct Investment, Developing Nations, Savings, Policy Reforms


Author(s):  
Amit Girdharwal ◽  
Amit Girdharwal

India embarked on a journey of economic reform in 1991 in order to remove the structural and institutional bottlenecks that were plaguing the Indian economy. The objectives of reforms were to achieve higher growth and efficient utilization of resources and thereby redistribution of resources. The reforms introduced in 1991 could be characterized as liberalization, privatization and globalization. Attracting FDI as an addition to existing pool of resources was one of the major objectives of reform. Since 1991, inflow of FDI in India has been rising steadily. The process that begun in 1991, has been constantly reformed in order to achieve the aspiration goals of India. The recent regime in India has reinvigorated economic reforms and thus helped in attracting historic level of FDI inflow. There seems to be a point of break around 2014 which marks that FDI inflow has peaked considerably thereafter.


2014 ◽  
Vol 16 (1) ◽  
pp. 54-61 ◽  
Author(s):  
Dr. A K Ray ◽  
◽  
Dipayan Ghosh

Author(s):  
Dr.Gaonkar Gopalakrishna M

FDI has become one of the important boosts to promote the progress of developing countries. In reality FDI helps to bring technology, create employment opportunities, increases productivity and integrating developing countries into the global market place. In that process raising stranded of living and poverty reduction is possible in the country concerned. Thus, FDI is inevitable inclination in every field of the country in recent years. Agriculture is one of the prominent sector in Indian economy which contributes more than 19% of GDP and 65% employment in India. Performance of Indian economy depending upon the improvement in the agriculture sector. Thus, boosting the agriculture is the need of the hour.This paper tries to analysis merits and demerits of FDI for agriculture in Indian context. In the midst of globalization, positive changes in any sector of the economy is the welcoming move. Indian agriculture and the population depending on it, are always important to India. Thus FDI to promote agriculture is certainly a significant step. However, after the reformation in1991, agriculture sector opened for foreign investment and was also followed by better technology, better seeds and thus rapid growth. KEW WORDS: Foreign Direct Investment,Agriculture, capital, inflow, globalization


Foreign direct investment (FDI) is always shows good impact in the growth of Indian economy and Foreign Direct Investment is the wonderful weapon device in the hands of Government of India. Foreign Direct Investment (FDI) plays vital role in an Indian economy. The new economic policy of liberalization, privatization and globalization pointed out in 1991 induced the policy of foreign direct investment. Hence the foreign direct investment is an inevitable one in our economy. FDI plays a multifaceted role in the overall development of any economy. FDI is often preferred over Foreign Institutional Investments (FII) as it considered to be the most beneficial form of foreign investment in an economy. FDI plays a multifaceted role in the complete development of any economy. It provides a new source for capital, can lead to technological up gradation, skill enhancement and allocate efficiency effects. While FDI is forecast to create clear impact on the economy, it has also contributed in certain adverse impact on Indian economy during the past few years. The present study is organized to study the correlation and investigate the impact of FDI on Indian economy. The flow of FDI for the past 15 years was taken for study (2003-2018). The consequences were studied by testing the correlation with the country’s GDP and Stock Market Indices. Sensex and Nifty were calculated as the authenticated representative of Indian Stock Market. The study concludes that flow of FDI into the country plays a dominant role in deciding the stock market movements


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