Emerging Trends of Foreign Direct Investment in Developing Asian Economies with Special Reference to India

Abstract

There has been a dramatic shift in the attitude of developing countries towards FDI in recent years. Most of the developing countries have adopted a much more favourable view of Foreign Direct Investment (FDI) inflows. Globalisation exposed the markets of developing countries to foreign shores. In this paper an attempt has been made to study emerging trends of FDI inflows in developing Asian economies from the year 1990 to 2015. Regional Distribution of FDI at global level and FDI policy reforms in India has also been highlighted. Study revealed that developing countries are growing at relatively faster rate than developed countries. Changes in international regulatory environment have helped in gathering momentum of FDI inflows in the developing Asia where a steady rise in FDI inflows has been witnessed due to existence of comparatively sound macroeconomic environment required for attracting the FDI inflows.