1. INTRODUCTION………………………………………………………1 to 2
2. Classification of FDI…………………………………………………..3 to 3
3. Policies for FDI in different sectors of India………………………..4 to 4
4. Trends in FDI………………………………………………………….5 to 6
5. Consequences for FDI……………………………………………….7 to 7
6. Role of FDI in the global and Individual economy…………………8 to 8
7. Analysis of FDI in India………………………………………………9 to 9
8. Advantages and Disadvantages of FDI……………………………10 to 10
9. Conclusion……………………………………………………………11 to 11
10. References……………………………………………………………..12
Introduction:-
Foreign Direct Investment (FDI) plays a very important role in the development of the nation. It is very much vital in the case of underdeveloped and developing countries. A typical characteristic of these developing and underdeveloped economies is the fact that these economies do not have the needed level of savings and income in order to meet the required level of investment needed to sustain the growth of the economy. In such cases, foreign direct investment plays an important role of bridging the gap between the available resources or funds and the required resources or funds. It plays an important role in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities.
Classifications of Foreign Direct Investment
FDIs can be classified as;
• Inward FDI and Outward FDI, depending on the direction of flow of money. Inward FDI occurs when foreign capital is invested in local resources. The factors propelling the growth of inward FDI include tax breaks, low interest rates and grants. Outward FDI, also referred to as "direct investment abroad", is backed by the government against all associated risk.
FDI net inflows are the value of inward direct investment made by non-resident investors in the reporting economy. FDI net