Foreign Direct Investment from an Indian Perspective

https://doi.org/10.46610/JEPR.2022.v03i02.005

Abstract

Foreign direct investment has been crucial to the expansion of many countries in the current universal environment. This is essential for emerging and poor nations. The reality is that these developing and undeveloped economies typically lack the income and savings levels sufficient to support the degree of investment necessary to sustain economic growth. When this happens, FDI is crucial in linking the gap between the available and required incomes or finances. In addition to serving as a source of funding, it contributes to the nation's long-term growth by boosting infrastructure, boosting productivity, and opening up new employment opportunities through technology transfer play part of India, FDI is viewed as a development instrument that promotes economic growth and self-sufficiency in several different areas. Foreign direct investment inflows to India significantly increased after the economy's liberalization and externalization in 1991. The goal of this article is to examine changes in his FDI inflows into India, as well as to categorize them by country and analyze the sectoral distribution of those investments there. Secondary information used in this paper was collected from many reliable sources. For research, straightforward statistical tools like Percentage and CAGR (Compound Annual Growth Rate) were utilized. The analysis demonstrates several tendencies in recent FDI inflows to India. This is reliable with the overall growth trend in the global economy. According to the survey, Mauritius has the most investments in India overall, and throughout the study period, the services sector attracted the most foreign direct investments from other nations. Most of the information gathered for the study is restricted to the previous 20 years and only pertains to the Indian economy.