Research Paper | Management | India | Volume 3 Issue 10, October 2014
Trend of FDI in India and Its Impact on Economic Growth
Foreign investments are the indispensable factors that help in boosting the growth of Indian economy. With the introduction of liberalisation policy under the finance ministry of Dr. Manmohan Singh in 1991 & with further few policy reforms, India has witnessed a change in the flow and direction of foreign direct investment (FDI) into the country. This paper has made an attempt to analyse the trend of FDI flow into the country and to find the relation between FDI, FII and GDP of the country. India has witnessed the increase in the flow of FDI from US $ 4029 million in 2001-01, to US$ 36396 million on 2013. Furthermore India has witnessed a year-on-year (y-o-y) growth of 24.2 per cent in FDI to touch US$ 3.95 billion in April-May 2013 as against US$ 3.18 billion during the same period in 2012. However, the analysis shows that the country is still far behind in comparison to some of the developing countries like China. The continuous upsurge in foreign direct investments (FDI), allowed across the industries and sectors, has proven that foreign investors have faith in the resilience of Indian markets. Furthermore, the study indicates that flow of FDI and GDP are positively correlated with each other and the countrys GDP is showing a positive movement with flow of Foreign Direct Investment in India. The flow of FII and FDI also shows the positive correlation with each other.
Keywords: Foreign Direct Investment, Foreign Institutional Investment, liberalisation, Gross Domestic Product, trade-openness, etc
Edition: Volume 3 Issue 10, October 2014
Pages: 639 - 642
How to Cite this Article?
Vinay Kumar, "Trend of FDI in India and Its Impact on Economic Growth", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=OCT1478, Volume 3 Issue 10, October 2014, 639 - 642
Similar Articles with Keyword 'Foreign Direct Investment'
Foreign Direct Investment Inflow in India
Krishan Kant Meena, Dr. M.R.P Singh
Issues of Research in the light of Trade Related Investment Measures and Foreign Direct Investment
Abhipsa Vagadia, Dr. Sandip Solanki
Similar Articles with Keyword 'Gross Domestic Product'
Determining Strategy Orientation Adopted by Public Universities in Western Kenya
Abongo Everlyn Beatrice, Dr. Patrick Ojera, Dr. Isaac Ochieng
Entrepreneurship and Human Development: Comparative Analysis for a Challenge to Growth
Luz Stella Vallejo-Trujillo, Jose Alberto Hernandez-Aguilar, Augusto Renato Perez-Mayo
Similar Articles with Keyword 'etc'
Global Challenges and Opportunities Post Pandemic
Rebecca F. D'souza
Nanobots: An Application in Sustainable Packaging
Similar Articles with Keyword 'Foreign'
The Impact of Organisational Change Management Theoretical Perspective in the Context of Zimbabwes Cash Crisis on Small to Medium Enterprises and their Consequent Adaptation Strategies
Enock Takudzwa Zenda, Austin Musundire, Obediah Mumanyi
Labor Moratory: Impact on Indonesias Economic
Mohammad Benny Alexandri, Meita Pragiwani, Devi Melisa Damiri
Similar Articles with Keyword 'Direct'
Empirical Study of the Top Management, their Skills and Abilities Case: Firms in Cuernavaca, Morelos. Mexico
Augusto Renato Perez Mayo PhD, Jose Alberto Hernandez Aguilar PhD, Luz Stella Vallejo Trujillo PhD
An Empirical Research on the Relationship between Dark Personality Traits (Dark Triad) and Impression Management of Employees at Small and Medium Companies in Riyadh - King Saudi Arabia
Raed Kamhia, Dr. Murat Unanoglu
Similar Articles with Keyword 'Investment'
Demand Management by Auto Component Manufacturers - A Study of Strategies
Dr. Gopaldas Pawan Kumar
Study on the Policies on Monetary Management in Schools
Similar Articles with Keyword 'Institutional'
Factors for Implementing Public-Private Partnership (PPP) in the Development Process: Stakeholders Perspective from Ethiopia
Teshome Tafesse Beyene
Quality Assurance: Institutionalizing Pragmatism
Lawrence Lowell PhD