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What is FDI
FDI gives great advantages to the host country and the research report
showed the benefits of FDI upon various sectors by examining the effect of
FDI on growth in the primary, manufacturing and services sector. The author
has used the empirical analysis technique and used cross country data for the
period 2004-2009 and found that the FDI has a great effect on the growth.
FDI in the primary sector showed a negative effect while investment in
manufacturing showed a positive result and the growth in the service sector
was the most.
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This paper analyses the route which FDI takes to come to India, its dimensions and
trends and the reasons for low FDI in India. The paper finds the main reasons of
low FDI as non implementation of approved projects, infrastructure backwardness,
low labour efficiency as well as procedural delays, red - tapism and corruption.
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Foreign direct investment (FDI) in India has played an important role in the
development of the Indian economy. FDI in India has - in a lot of ways - enabled
India to achieve a certain degree of financial stability, growth and development.
This money has allowed India to focus on the areas that may have needed economic
attention, and address the various problems that continue to challenge the country.
India has continually sought to attract FDI from the world¶s major investors. In
1998 and 1999, the Indian national government announced a number of reforms
designed to encourage FDI and present a favorable scenario for investors.
FDI investments are permitted through financial collaborations, through private
equity or preferential allotments, by way of capital markets through uro issues,
and in joint ventures.
RSARH MTH=D=L=Y
Descriptive methodology is being used in
this research project.
The type of test applied in this research is
the regression.
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