Abstract

This paper intends to provide an overview of the trends of inflow of foreign capital in India and how it contributed to the employment growth. A comparison of Indian scenario with the rest of the world is presented next. It is found that inflow of foreign capital is concentrated mainly in the service sector and is inadequate in the manufacturing sector. Foreign investment led to increased employment in absolute terms, but it is not sufficient to absorb the ever-expanding working-age population of India. Therefore, this study also zooms into the possible channelization of foreign capital that would help create employment opportunities which requires improvement in the employability of workers. In other words, we prescribe policies that will make India ‘Atmanirbhar’.

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