Impact of FDI on Indian Economy

Abstract

FDI play an important role in economic development of a nation. A country’s technology level and sectoral development is depending upon the level of FDI inflows. The purpose of this study is to analyze the trend of FDI equity inflows in different sectors and regional offices. This paper also helps to know the share of top investing countries in FDI equity inflows in India. In order to obtain the objectives of this study, we used secondary data for the periods of 2000-2013. The secondary data has been collected from various journals, books, Newspapers and websites etc. The maximum FDI inflows can be seen in the Service and construction sector while telecommunication, computer hardware and drugs sector attract the equal FDI equity inflows i.e. 6% of total FDI inflows. The results also presented that India have received maximum FDI inflows from the Mauritius and followed by the Singapore. The detailed discussion about the Foreign Direct Investment is an original contribution of this paper.