Foreign Portfolio Management In India

The economic development of a country involves utilization of its resources for increasing the productive capacity of the country. But in most of the developing countries such utilization of resources rather difficult due to the scarcity of domestic capital and thence there is a need to attract the foreign capital. Given the role of foreign capital and technology as and impetus to economic development, the question arises as to which is the best resources of importing capital from the develop countries.

Foreign investment is one of the oldest and recognized channels for importing capital and technology from the developed countries into the developing countries. Foreign investments especially through multinational corporate has been a subject of animated discussion both in the home and the host countries. Foreign is a nebulous concept. In wider sence it denotes wide spectrum of international business arrangements, but in essence it entails flow of capital, technology , shills and enterprises from one country to another. Such flows, although a new Phenomena, have assumed significant in the wake of the needs and desires of contemporary developing countries to push up their growth rate. In India , like any other developing countries , the role of foreign investment is debated hotly.

Today when all efforts are being made to develop the economy, the government and the people expect the foreign firms to play a more positive roles in the economic    development of India.