Trends and patterns of foreign direct investment in India

Abstract

Foreign Direct Investment (FDI) plays a very important role in the development of the nation. It is very much vital in the case of underdeveloped and developing countries. It serves as a link between investment and saving. Many developing countries like India are facing the deficit of savings and capital formation.  This problem can be solved with the help of Foreign Direct Investment. It plays an important role in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities. India needs a massive investment to achieve the goals of vision 20-20.This paper is a general analysis of the trends and patterns (state-wise, sector –wise, country-wise) distribution of FDI Inflows the post liberalization era. The purpose of this paper is to provide an examination of foreign direct investment in various sectors and government policy regarding foreign investment.