A Study on Foreign Direct Investment in India: An Empirical Outlook

K. Pagavathi and K. Prabhakar Rajkumar

The Indian Government has initiated the New Economic Liberalization Policy (NELP) in 1991 to boost the Indian economy on the path of recovery. Of several measures taken, the Foreign Direct Investment (FDI) Policy is considered to be very vital one to improve the fast growth of some important sectors of the economy. In this context, an empirical study has been taken up to find out the growth of FDI inflows from 1991-92 to 2017-18 to make a comprehensive growth assessment as well as its impact on Indian economy. The study has clearly brought out that it has a greater positive impact on Indian economy. It is also observed that there has been a steady inflow in terms of investment as well number of countries which are showing more interest to invest in new sectors like banking, insurance, telecom, etc. The study also proved the hypothesis of positive growth rates of FDI inflows over the years that influenced a positive impact on Indian economy. When we look at the investment of the top ten counties, Mauritius and Singapore together showed a lion’s share of total investment. Similarly, service and computer related sectors proved to be vital for future investments by the investors. The study observed that the important sectors such as agriculture, healthcare and human resources are to be given higher priority to make Indian economy on a path of global competitiveness, or else, the growth will be one sided rather than the complete growth of Indian economy.

Volume 11 | 09-Special Issue

Pages: 147-156

DOI: 10.5373/JARDCS/V11/20192548