Trends and Flow of Foreign Direct Investment:An Indian Perspective

Foreign Direct investment plays a very important role in the economic development of the nation. Sometimes domestically available capital is inadequate for the purpose of overall development of the country. Foreign capital is seen as a way of filling in gaps between domestic savings and investment. India can attract much larger foreign investments than it has done in the past. To fully utilize the country's immense economic potential, the government launched Economic reforms in 1991. The new government policies are simple, transparent and promote domestic and foreign investment. India's abundant and diversified natural resources, its sound economic policy, good market condition and high skilled human resources make it a proper destination for FDI. The present study has focused on the trends of FDI Flow in India during 2000-01 to 2014-15. The study also highlights country wise approvals of FDI inflows to India and the FDI inflows in different sector for the period 2000 to 2015. The study based on secondary data which have been collected through reports of the Ministry of Commerce and Industry, Department of Industrial Promotion and Policy, Government of India, Reserve Bank of India, and World Investment Report.