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Trend and Impact of Foreign Direct Investment on Indian Economy

T Dev Karan and Ms.Rekha
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T Dev Karan: Assistant Professor, Deptt. of Economics Jai Narayan Vyas University, Jodhpur, Rajasthan, India
Ms.Rekha: Assistant Professor, Deptt. of Economics Jai Narayan Vyas University, Jodhpur, Rajasthan, India

Abstract of Economic, Finance and Management Outlook, 2016, vol. 6, 14

Abstract: Today, significance of foreign direct investment (FDI) has increased enormously. The tremendous increase in FDI is result of globalization of the world economy. At present, almost all developing countries are adopting liberal policies towards FDI. In the post liberalisation era, India is known to have attracted a large amount of Foreign Direct Investment. Foreign direct investment in India is allowed freely in most of the sectors, except a few. FDI is a significant tool for boasting economic growth through its strengthening of domestic capital, productivity and employment through the upgrading of technology, skills and managerial capabilities in various sectors of the economy. Presently, India has been a major recipient of FDI Inflows in the majority of sectors. Indian sectors attracting highest FDI inflows are service, electrical equipments, transportation industries, fuel, telecommunication and food processing industries, Cement and gypsum products, metallurgical industries, chemicals, and drugs and pharmaceuticals are some Indian industries attracting sizable amount of FDI inflows. In this paper, an attempt has been made to critically examine the trend and impact of FDI inflows in some important sectors of Indian economy using statistical tools like correlation and linear regression methods.

Date: 2016
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