Impact of Foreign Direct Investment of Indian Economy in Epoch of Global Value Chain with Reference to Industrialists in Tirunelveli District

Abstract

A foreign direct investment (FDI) is an investment in the form of controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. Foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in other country. Generally, Foreign direct investment (FDI) takes place when an investor establishes foreign business operations or acquires foreign business assets, including establishing ownership or controlling interest in a foreign company.Foreign direct investment (FDI) in India is a major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India. Foreign Direct Investment (FDI) gives both positive and negative impacts on Indian economy in epoch of global value chain. The global value chain (GVC) describes the people and activities involved in the production of a good or service and its supply, distribution, and post-sale activities (also known as the supply chain) when activities must be coordinated across geographies. A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product from the delivery of source materials from the supplier to the manufacturer, through to its eventual delivery to the end user. International production, trade and investments are increasingly organized within so-called global value chains (GVCs) where the different stages of the production process are located across different countries. Industrialists are having different thoughts on impacts of Foreign Direct Investment (FDI) on Indian economy.