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Foreign Direct Investment in India: A Trend Analysis
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Shyness of capital market of developing countries makes them dependent on Foreign Direct Investment (FDI). Capital formation rate of developing countries stands all the time low in comparison to developed countries. Developing nation is characterized by more requirement of capital than its supply. In order to fill this wide gap between demand and supply capital FDI took a central place after first generation of Indian economic reform. Nowadays role of FDI is considered as a key of development engine and it has increased very significantly in last two decades. More than half of the total capital inflow developing countries are receiving in the form of FDI. Across the world most of the developing nations are trying to attract FDI through their liberal and lure economic policies. Restrictions which were earlier in existence now are being removed. This paper examines the trend of FDI in last many years and forecast its trend.
Keywords
Economic Development, FDI, Government Policies, Inflow, Outflow, Retail.
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