An Analysis of Foreign Direct Investment Inflows in India

Abstract

Foreign Direct Investment (FDI) plays an important role in the long term economic development of the 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. It is a key foreign exchange earner and provides employment to majority of Country’s technical workforce. Having identified FDI as a major thriving force for economic development, a study on the sectors which attract the maximum inflows becomes absolutely essential.