Abstract
In this research paper we have tried to focus that up to what extent that foreign direct investment (FDI) in Indian context considered one of the most crucial factors either to acquire or transferring investments witnessing development and growth in its economy. There are many set-up of FDI both inward as well as outward and accordingly companies should try to do an advanced research before actually investing in a foreign country. We have monitored each and every aspect of FDI both inward as well as outward in pre demonetization and post demonetization periods. In the first part of our research we have already analyzed Indian economy in the perspective of IFDI and got published titled foreign direct investment (influx) from different nations and its impact on economic development in India: “A detailed study in service sectors and its contribution in overall economic development” in one of international journals. It has been proved and accepted that FDI (inward or outward) can be a win-win situation for both the ventures whether home country or foreign country involved. The investors can gain cheaper access to products/services and the host country can get valuable investment locally as well as internationally. We researchers have focused FDI outward in country wise, sector wise as well as year wise from India and compared various aspects and implications to its counterparts.
Highlights
foreign direct investment (FDI) is lifeblood of any country as far as its international trade is concerned
For any sound developing economy like India, FDI is one of major sources for economic stability and development and due to demonetization India faced liquidity crunch for foreign payments and FDI inward and more of that FDI outward substantially reduced as it hurt confidence of foreign ventures to invite Indian MNEs to invest within their countries, to justify our theme of research we have shown enough reasons from the available data to defend our topic
Analysis of outwards foreign direct investment sector wise from India 2013 to 2018: As per research methodology, 5 sectors were picked and their analysis was done on the basis of which conclusion on outward foreign direct investment (OFDI) in Indian context was given in present study
Summary
FDI is lifeblood of any country as far as its international trade is concerned. We have seen in recent years that due to fast development and growth in investment patterns globally, the definition has been expanded to include all the acquisition resources and activities outside the investing firm in respective home country. FDI in both the cases of inward and outward may take an array of acquisition of a foreign firm, transferring its establishment to foreign country from home country, or investing in a joint venture or even establishing a strategic alliance and cooperation with one of the local or international firms with transferring technology and other vital resources in order to yield financial gains and leverages as compared to other companies in their competition in home as well as in foreign country. FDI is targeted to provide benefits to home country as well as foreign country in many aspects. This gives the investor an opportunity to enter the new market and earn substantial profits and other business benefits. Just for the sake of information and risk alertness companies involved in aforesaid business activities need to send Reserve Bank of India a notification within 30 days of the receipt of the investment amount from concerned countries. The related documents have to be handed over to the foreign investor within 30 days
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