ZENITH International Journal of Business Economics & Management Research
Year : 2012, Volume : 2, Issue : 7
First page : ( 212) Last page : ( 229)
Online ISSN : 2249-8826.

Analysis of fdi inflows and outflows in India

Ms. Mittal Parul*, Mr. Aggarwal Sandeep**

*Assistant Professor, Department of Management, Indira Gandhi P.G. Regional Center, Mirpur, Rewari-123401.

**Assistant Professor, Department of Management, Indira Gandhi P.G. Regional Center, Mirpur, Rewari-123401.

Abstract

Foreign Direct Investment (FDI) as an important driver of growth. It is an important source of non debt financial resources for country for economic development. Besides it is a means of achieving technical knowhow and employment generation of employment. However, many are of the view that FDI is a big threat to sovereignty of host and domestic business houses. Midst of debate on pros and cons of FDI, world economy has observed a phenomenal change in volume and pattern of FDI. India emerged as an attractive FDI destination in services but has failed to evolve a manufacturing hub which has greater economic benefit. FDI though one of the important sources of financing the economic development, but not is not a solution for poverty eradication, unemployment and other economic ills. India needs a massive investment to achieve the goals of vision 20-20. The major impact during the recessionary period was mainly due to the negative flow of FII in India while the FDI remained moderately unaffected with the global slowdown. The attractiveness of India for FDI is far from receding and can surely be expected to sustain over the next decade as well. This paper is a general analysis of the inflows and outflows of FDI since the post liberalization era. The purpose of this paper is to provide an examination of foreign direct investment in various sectors. The paper aims to present a unique understanding of FDI in the context of liberalization and the prevailing political climate. At the end of this examination, figures showed the trend of FDI inflows and FII in India and geographical distribution of FDI Inflows. It also gave a clear picture of share of top investing countries FDI equity inflows.

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Keywords

Foreign Direct Investment (FDI), analysis of investments in India, flows of FDI.

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