Volume5 ,February 2018.
Topic : Foreign Direct Investment: It’s Impact on Developing Countries Economy - A Study of India
Authors:Dr.Naresh Guduru || S.Phaneendra
Abstract:Foreign direct investment (FDI) is considered to be one of the important factors, which leads to the globalization of an economy. The globalization over the last two decades has been hailed as a major development, which results in economic prosperity in developing countries. In this paper, we have attempted to identify the Determinants, impact and problems associated with India’s current foreign direct investment regime, and more importantly the other associated factors responsible for India’s unattractiveness as an investment location. The presence of a large domestic market, fairly well developed financial architecture and skilled human resources, it can attract much larger foreign investments than it has done in the past. India's present international investment regime facilitates easy entry of foreign capital in almost all areas subject to specific limits on foreign ownership. Entry options have not only become procedurally simpler, but prospects for higher yields from investment have also become brighter. But the further boost to Foreign Direct Investment (FDI) will depend significantly on further liberalization of its foreign investment regime. The paper provides the brief synthesis of the regime and analyzes the economic and policy variables as the important determinants of FDI inflows to India..
Keywords: Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), Gross Domestic Product (GDP), Economic Policy Reform.