Foreign Direct Investment In India Research Articles

Foreign direct investment in India’s retail market: An analytical study

Foreign direct investment in India’s retail market: An analytical study

Efficacy of Foreign Direct Investment in India - An Evaluation

Foreign investment plays a noteworthy role in all walks of development. Foreign Direct Investment bridges the gap between saving and investment. In the process of economic development, foreign capital helps to cover the domestic saving constraint and provide access to the superior technology that promotes efficiency and productivity of the existing production capacity and generate new production opportunity. The perceptible growth of India’s GDP, particularly in the past few decades has lifted millions of people from sever poverty on the one hand and made the country a conducive ground for foreign direct investment on the other hand. A recent UNCTAD survey projected India as the second most important FDI destination after China for transnational corporations during 2010-2015. Services, telecommunication, construction activities, computer software & hardware and automobile are major sectors, which attracted higher inflows of FDI in India. Few nations such as Singapore, Mauritius, the US, and the UK were among the leading suppliers of FDI in India. This paper intends to examine the degree of global countries’ participation, the sector-wise inflow of foreign capital and the recent initiatives of the government policy towards foreign direct investment.

Impact of Covid-19 on foreign direct investment in India: An analytical study

Impact of Covid-19 on foreign direct investment in India: An analytical study

Trends and Patterns of Foreign Direct Investment in India: An Empirical Analysis

Trends and Patterns of Foreign Direct Investment in India: An Empirical Analysis

Special aspects of investment cooperation between India and ASEAN countries in the modern period

India examines relations with ASEAN countries as one of the priority vectors of the modern foreign economic strategy South - South. The purpose of the article is to analyze one of the most important aspects of Indian economic relations with the countries of Southeast Asia - investment cooperation. The article covers a wide range of analytical methods: statistical analysis, forecasting, comparison, theoretical generalization, statistical data processing, and also abstract-logical analysis (for systematization and generalization of the main areas of investment interaction). The indicators of Indian foreign direct investment to ASEAN, including country-wise distribution, and the associations foreign direct investment to the republic are analyzed in detail. The authors consider in detail various aspects of intercountry investment interaction. The association is the main focus for Indian investments abroad and a significant investor to the republic, as demonstrated by stable bilateral economic relations. In general, investment cooperation seriously contributes to the development of relations between India and ASEAN.

FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: TWO EQUALLY DESIRABLE DILEMMAS OF POLICY MAKERS IN INDIA

The study aims to analyze the importance of economic growth that has more relevance than Foreign Direct Investment (FDI) inflow for a stable development in India. The article takes the period of 1978 to 2019 to analyze the same. It applies Auto Regressive Distributed Lag Modelling Approach to find out the impact of economic growth. It is proved that there is a cointegration between FDI and economic growth in long run. In short run, both economic growth and FDI granger cause each other. Also, there exists a negative effect of FDI on economic growth in short run. Hence, the study recommends a threefold development process in India. The policy makers are suggested aligning the economic policies in a way to focus at the first stage only on economic growth which will bring FDI in India. At the second stage, they need to find relevant macroeconomic variables that will be positively influenced by FDI so that, at the third stage, these variables will ultimately contribute to growth of Indian economy.

Foreign Direct Investment (FDI) in the Defence Sector of India : A Review of the Policy Framework

This research paper provided an overview of the existing policy of FDI in the defence sector. It analyzed the effect of liberalization of FDI on the defence sector and examined the benefits India has derived in terms of technological advancements and employment generation. With opening of the defence sector, the Indian government sought to attract major defence players and acquire new technology. India is the third largest military and sixth biggest defence spender and one of the largest importers of conventional defence equipments. The ‘Make in India’ initiative by the Modi government has focused its efforts on increasing indigenous defence manufacturing and to become self-reliant. The study examined the existing framework of FDI in India for the defence sector, its strategic partners, and the collaborations under the ‘Make in India’ programme. It also looked at the pros and cons of the existing policy and discussed their implications and suggested policy recommendations for the future. India aims to be among the top five countries in aerospace and defence, for which it is desirous of reducing dependence on imports and focus on development of indigenous weapon systems. The paper looked at the progress made through the FDI in defence route.

Drivers of Indian FDI to Africa – an initial exploratory analysis

This paper attempts to analyse the drivers of the emerging Foreign Direct Investment (FDI) relationship between India and Africa. Using a fixed effect negative binomial model, it examines the determinants of FDI from India to 23 African countries from 2008 to 2016. The study finds that Indian FDI to Africa is a unique combination of both private sector and state driven investment. It is driven by the search for markets, and is pulled despite an adverse business environment. Indian FDI has contributed to several African countries by development of their manufacturing sector and contribution to employment, and has the potential to solve regional problems of poverty and inequality. The paper thus makes a pioneering contribution as an empirical study on OFDI from India to Africa and also to the literature on south – south FDI.

Role of foreign direct investment in India: A study in India

Role of foreign direct investment in India: A study in India

Impact of motives of inward FDI on benefits perceived by foreign multinational enterprises investing in India

The study aims to determine the principal motives of inward foreign direct investment by foreign multinational companies in India. The study undertakes to find out the impact of motives of inward foreign investment of multinational firms on benefits as perceived by the managers. The paper uses a survey approach to collect data about motives and its impact on benefits. Statistical tools, namely confirmatory factor analysis, structural equation modeling have been used. The study found that principal motive for foreign multinational firms to undertake investment is market-seeking followed by resource-seeking and efficiency-seeking motive. The strategic-asset seeking motive does not significantly influence foreign direct investment in India. The study found a positive impact between perceived benefits and motives of inward foreign direct investment in India.

Foreign Direct Investment in India: Emerging Trends and Patterns

This paper examines the trends in foreign direct investment (FDI) in India during 1980-2018 and the emerging patterns of the FDI inflows in the country during the last two decades (i.e., 2000 - 2019). Our analysis, based on the secondary data collected from UNCTAD and DPIIT, reveals that the ongoing FDI liberalization measures started in India since 1991 have resulted in a dramatic upsurge in the FDI inflows as well as a stock of FDI in the country. The share of India in the global FDI inflows has increased in the post-liberalization period. Still, there was no perceptible increase in India’s share in the global FDI stock during this period. Detailed examination of the patterns of the FDI inflows in India revealed that the equity capital had been the largest component of the FDI in India.Moreover, its share in the total FDI inflows has been increasing during 2000 and 2019. Mauritius and Singapore have been the two important sources of FDI inflows into India, contributing more than half of the FDI flows during the last two decades; this was mainly because these countries were considered as tax heavens for investors from other counties for routing their investments to India. Sector-wise distribution of FDI in India during the last two decades of the post-liberalization period (i.e., during 2000 - 2019) has shown that the service sector has emerged the largest recipient of FDI replacing the manufacturing sector. Our analysis has clearly shown the impact of liberalization on enhancing the FDI flows as well as stock in India and also in changing patterns of FDI distribution in the country.

Determinants of foreign direct investment outflow from India to Poland

Abstract This article concerns the determinants of foreign direct investment (FDI) outflow from India to Poland with some insights to other European countries. This topic strongly relates to globalization of foreign trade and especially new economic initiatives between European Union (EU) and India, which was one of the first countries to develop trade relations with EU. According to CEIC data – Financial Data and Economic Indicators, India’s FDI outflow increased slightly to 1.4 billion USD in September 2019 in comparison with 996.5 million USD in September 2018, but it is still below the average of 1.8 billion USD for a period of 2007–2019. Available at: https://www.ceicdata.com/en/india/foreign-direct-investment-outflow/foreign-direct-investment-outflow (accessed October 19, 2019). Very limited number of the scientific research can be found in European literature about India’s FDI outflow to EU countries in period of 2004–2019. Indian economists made some research on that topic. Professor J. Ramachandran (listed among the Best Management Thinkers for the year 2015, the first Bain Fellow in India) from Indian Institute of Management Bangalore in 2004 and Professor Jaya Prakesh Pradhan from Central University of Gujarat in 2008 explored the evolution in Indian outward FDI, referring to a shift in the pattern of overseas expansion and basis of competitiveness of Indian companies. The main goal of this article is to explain what really triggers Indian investors to go to Poland and what kind of businesses they form. Some examples of the Indian-based companies are mentioned to support the analysis. The author of this article also researched on different governmental bilateral trade agreements and initiatives, trying to find any direct impacts of that on the India FDI outflow to Poland and other EU countries. He used empirical method of the analysis based on accessible data for period 2004–2019 and literature in that topic and also direct interviews with private Indian investors who made decision to start and run their business in Poland or other EU countries. The main conclusion is that Poland the leader of Visegrad Group is an interesting investment for India and India can be for Poland a counterpart investment partner to China.

Dimensions of Foreign Direct Investment Inflow in India After 1991

Foreign Direct Investment (FDI) has emerged as an important topic for researchers and policymakers in India. The present study analyze the dimensions, i.e., current status, global position, trends, growth, sources, sectoral composition, regional distribution, and the determinants of FDI inflow in India after the economic reforms in the year 1991. Furthermore, this piece of research answers an important question, i.e., whether the currency area hypothesis of Aliber (1970) is good enough to explain FDI inflow in India during 1991 – 2018? The study uses trend analysis and simple linear regression analysis to analyze the data. The findings of this research have shed light on some of the important aspects of FDI inflow in India. The inward FDI in India has increased from the US $75 million in 1991 to the US $42285.68 million in 2018, registering an annual average growth rate of 37.85 per cent. This study also finds that the increase in the value of Indian Rupee has an inverse impact on the FDI inflow. Thus, the findings support the currency area hypothesis of Aliber (1970) . It suggests that policymakers should consider the exchange rate while formulating policy to attract FDI inflow into India.

A Study on Impact of Make in India in Indian Foreign Direct Investment

That impact of globalization on employment can be a Central concern of current political current economic climate. For the “Make in India” promotion, the Government of India has diagnosed twenty-five precedence sectors that will be offered properly. Foreign direct investment (FDI) in India has received a the spian enhancement from instigating the Make in India scheme, as per the most recent Economic Survey. The investment climate in India has improved. Intending to attract and promote FDI, the Government of India (GoI) has put in place a policy framework on FDI, which is transparent, predictable, and easily comprehensible. India received FDI Inflow during 2014-2018 of US$ 223. Sectors such as Services, Computer software & hardware, Telecommunications, Trading, and Construction attracted the highest FDI. Most of the foreign countries like to invest in India during the 2018-19, India received the maximum FDI equity in flows from Mauritius, followed by Singapore and Japan. Total FDI investments in India during 2018-2019 are 62,001 cores, Government of India new polices to promote the FDI impact top 10 sectors services sector, Telecommunications, Computer software and hardware, Construction Development, Trading, Automobile Industry, Chemicals, Drugs & Pharmaceuticals, Construction (Infrastructure) Activities, Power. Most as of late, the all-out FDI value inflows for April 2019 contacted 36,463 crores. India During 2018-2019, India got the greatest FDI value inflows from Mauritius (Rs 57,139 crore), trailed by Singapore (112,362 crores), Netherlands (9,423 crores), USA (10,119 crores), and Japan (3, 28 4crore). This paper aims at explaining the impact of Make in Indian Foreign Direct Investment in various aspects.

FDI Equity Inflows in Economic Development in India

Outside Direct Investment nation's economic background. In nations just as India, Do assets's movements isn't meant by the nation of origin to the host nation yet in addition incorporates the conversational practices associated with the executives, joint endeavors, innovation move, and information, and so on. The present pattern in Foreign Direct Investment aids the upliftment of India with regards to mostly employment buildings and that lifts the amount of fare of the hosting nation. The countries like India are selected to invest because, low-cost labor, huge market size, enormous natural, corporal resources and having young graduates. The Indian government one of the hug initiatives make in India policy, skill India, digitalization, sustainable economic growth, etc. The government of India launched major sector-wise divided into infrastructure, automotive, pharmaceuticals, service, railways, chemicals, textiles, airlines, etc. Huge shareholders have contributed to the Foreign Direct Investment in India, but 80% of cumulative Foreign Direct Investment Is due to the top ten countries. The remaining inflows 20% of shared by the rest of the world from 2013 to 2019. However, among these top ten countries, only Mauritius contributed to the lion share of investment in India. This paper focuses to attempt the analysis of Foreign Direct Investment and economic development in India. The researcher has analyzed the different according to various partitions.

Textile industry in new India: challenges and opportunities

Textile industry contributes 2% of Indian economy as the second largest source of employment. It has 15% of Indian export earnings and investments are vital for its growth. Upgradation through modernising the machinery to ensure overall efficiency, innovative processing and working capital management are some of the important exponents to enhance the status of industry. Manpower availability and compliance of labour laws are very crucial to meet international standards. Obviously global standards face a variety of challenges across the frontiers to assume leadership in the trade which necessitates domestic productivity. 'Make in India', 'Startup India' and 'ease of doing business' can boost foreign direct investments in India. 'Ease of doing business' will facilitate capacity building and support the reforms in labour legislations, improvement in logistic performance etc. These factors will strengthen the industrial performance by availing opportunities to achieve the status of a benchmark to capture international market.

RECENT TRENDS OF FOREIGN DIRECT INVESTMENT INFLOWS IN INDIA: AN ANALYTICAL REVIEW (2000-2019)

Foreign Direct Investment plays a very vital role in the development of the nation. Domestic capital is inadequate for the purpose of overall development of the country. Foreign capital is the way by which we can fill the gaps between saving and investment of domestic economy. In present scenario, Indian Economy is one of the most emerging economies of the world today. In the last two decades world has been extensive inflow of FDI into developing countries. Many developing countries are in competition with each other to attract FDI. Since 2014, India has emerged as of the top foreign destination in the world with a significant rise in FDI. Foreign Investment in India started back in 1991 after implementation of New Economic Policy. During 2000s, there is a big rise in Foreign Direct Investment in India. This paper focuses on secondary data based Sectoral Analysis of the inflow of FDI in India during 2000 to 2019. This paper also focuses on FDI policy framework, country-wise, equity wise FDI inflow in India.

Economic Determinants of Foreign Direct Investment in India

Foreign direct investment is an investment made by a firm or individual in one country into business interests located in another country. It is one of the most interesting topics in the area of international business and trade. Foreign companies invest directly in fast growing private Indian businesses to take benefits of India. The foreign investors mostly from the urbanized dynamic centers are enhancing international production by investing in resource abundant economies. This shows substantial differences in specifications with little agreement on the set of covariates that are included. The main objective of this FDi are To examine the policy framework of India in relation to foreign direct investment and to analyze the trends and patterns of foreign direct investment in India and to assess the present position of FDI in India This paper empirically attempted to investigate the determinants of foreign direct investment in India. This paper investigates the role of economic structures as determinants of foreign direct investment inflows. The exports has been emerged the most powerful determinant of FDI. This article is to understand the extent to which well functioning economic structures are important drivers of FDI inflows into advanced countries. The Various factors which play a significant role in attracting FDI into a particular state are also examined. It is an appealing concept through which companies progress and enter into new markets as a result of globalization. It has grown that the academic and policymaking worlds have struggled to keep up with the expanding incident. FDI is an engine of economic growth and development of Indian economy but in this respect proper directions are needed to improve the quality of the Indian economy as a whole.

Impact of Foreign Direct Investment in Indian Banking Sector

This article sustains the level of impact on foreign direct venture has on the Indian banking sector in the wake of the extraordinary capital takeoff from the Indian economy during the recent global economic recession the credit crunch. Information which are secondary data nature were obtained from measurable announcements of the Central Bank of India. Results uncovered that there is a non-positive significant impact of outside direct venture on the value capital of the Indian financial area, there is a negative unimportant effect of remote direct speculation on the liquidity position of the Indian banking sector and there is a negative inconsequential effect of remote direct venture on the absolute resources of the Indian banking sector. It is prescribed that the Indian Government should pay attention to more the obligation of making an empowering domain for powerful, esteem including outside direct interest in the banking sector without losing the prerogative of sovereignty. It is additionally prescribed that officially existing foreign direct investment in India should to be supported and the Government should start to take a gander at outside direct venture from a more profound point of view. The quality and structure of outside direct speculation should now be seen from the viewpoint of interest in more extensive parts of the economy (i.e power, manufacturing, banking and export-oriented industries) and the utilization of nearby providers, as opposed to a disproportionate spotlight on extractive enterprises. An endeavor has been made through this paper to assess the FDI inflows in the retail area.

Factors Determining in Foreign Direct Investment (FDI) in India

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.