Factors Determining in Foreign Direct Investment (FDI) in India

Abstract

Foreign direct investment (FDI) has become an integral part of national development strategies for almost all the nations globally. The study global popularity and positive output in augmenting of domestic capital, productivity and employment; has made it an indispensable tool for initiating economic growth for countries. The FDI in India has contributed effectively to the overall growth of the economy in the recent times. The government adopted a New Economic Policy which promoted the policy of LPG (Liberalization, Privatization and Globalization). This has resulted in promoting more foreign direct investment into the country. The purpose of this study is to investigate the factors determining the foreign direct investment in India. This study also examines foreign direct investment in India. The main objectives of the study factors determining in foreign direct investment in India. The data mainly based on secondary data. The collected data were analysed by using trend analysis and growth rate of top ten sectors in India. This study also found that FDI in India has contributed effectively to the overall growth of the economy in the recent times. Thus, India can grow without FDI and in fact developed without or with very little FDI. Developing countries like India need substantial foreign inflows to achieve the required investment to accelerate economic growth and development.