Abstract

Foreign direct investment (FDI) is considered to be the lifeblood of economic development especially for the developing and underdeveloped countries. FDI is a tool for jump-starting economic growth through its strengthening of domestic capital, productivity and employment through the up gradation of technology, skills and managerial capabilities in various sectors of the economy. The present paper attempts to analyse significance of the FDI inflows in various Indian sectors from 2000–2011. The sector-wise analysis and ranking of FDI inflows in India reveals that maximum FDI has taken place in the services sector including financial and non-financial, followed by the telecommunications sector and then computer hardware and software.

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