Determinants of Foreign Direct Investment in India: An Empirical Analysis Dr. Kaur Manjinder1, Dr. Dhillon Sharanjit S.2,,3 1Assistant Professor, PG Department of Commerce, Guru Nanak Dev University College, Chungh, Tarn Taran, Punjab, India. manjindergndu@gmail.com 2Professor, Punjab School of Economics, Amritsar, Punjab, India 3Former Registrar, Guru Nanak Dev University, Amritsar, Punjab, India, dhillon_sharanjit@yahoo.co.in Online published on 21 August, 2017. Abstract During the post liberalisation period from 1991–92 to 2014–15 an increase in FDI inflows has been observed except for the years 1998–99 to 1999–00, 2002–03 to 2003–04, 2009–10 to 2010–11 and 2012–13. The major chunk of FDI is contributed by six countries viz., Mauritius, Singapore, UK, Japan, Netherlands and US with highest proportion of FDI inflows being in service sector. In spite of tremendous rise in FDI inflows in the post liberalisation period, the magnitude of FDI inflows in India is very low in comparison with other emerging market economies due to its weak infrastructure and stringent laws. Empirical analysis based on various pull factors for FDI inflows to India exhibited that real wages and unemployment of host country has significant and favourable impact on FDI inflows. However, external debt as an indicator of efficiency of host country has adverse impact on FDI inflows. Top Keywords Liberalisation, Multicollinearity, Pull, Significant, Unemployment. Top |