FDI Inflows in India: An Analysis of the Trend During 2004–2018 and Future Projections for the Next Decade

Abstract

Developing economies have been seeing an exhaustive rise of foreign direct investment (FDI) inflows all through the past two decades. Traditionally, India has pursued an enormously cautious approach; however, in 1991, India initiated the process of economic reforms towards a more open economy and got the sequence of processes to draw more FDI. The present study depends on the secondary data, and the time of the study is from 2004 to 2018. The FDI inflows have increased from US$5,777.8 million in 2004 to US$61,963.1 million in 2018. This article aims to present the descriptive analysis of FDI inflows in India during the selected period and also describes the long-term trend as well as the growth history of FDI inflows. The motivation behind this article is to make an effort to forecast the FDI Inflows in India for the coming years with the help of growth analysis, trend analysis and ARIMA (Autoregressive integrated Moving Average) forecasting. The result of future projections shows a positive trend indicating manifold increase in FDI inflows in India in the coming years.