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Financial Markets, Institutions and Risks
The paper basically explains the nature and trends of FDI inflows in agriculture and subsectors of agriculture in India under two broad ways. In the first case, the linear trend was examined utilising linear semi-log regression model. In the second case, the nature of cycle and the cyclical trend were found out by applying H.P. Filter model. The linear trend, cycle and cyclical trend of FDI inflows in India in agriculture during 2000-01-2017-18, agricultural services during 2001-02-2021-22, agricultural machinery, tea and coffee, food processing, sugar and fertilisers respectively during 2005-2018 have been computed. Yet, the paper included the nature of global FDI inflows in agriculture very briefly. The paper observed that the linear trends in FDI in agriculture, agriculture service, food processing have been increasing significantly in which their cycle and cyclical trends are significantly meaningful. On the other hand, the linear trends of FDI in tea and coffee and agricultural...
IAEME PUBLICATION, 2021
This paper investigates the impact of foreign direct investment on Gross Domestic Production (GDP) Of India. The objective of this paper is to study the impact of FDI on GDP of India. It studies a long run relationship between the foreign direct investment and gross domestic production in India. This relationship is tested by applying Regression model. The change in GDP is taken as dependent viable and FDI taken as independent variable. This paper deals with the country wise impact of FDI on GDP of India. In this paper the researcher obtains eleven years data to analyses the impact. In this paper the researcher mentioned top nine countries FDI in India and this FDI taken as share in GDP of India, Total FDI inflows to India and FDI taken as share in GDP of India. In this paper the researcher evaluated the impact of FDI on GDP of India through testing of regression analysis. For this regression analysis GDP taken as dependent variable and FDI taken as independent variable, for this regression analysis the researcher taken twenty years data (1995-96 to 2015-16) as financial year wise. The result shows that the overall model is significant. There is a positive and significant impact of FDI on GDP of India.
India is an agricultural country and agriculture, with its allied sectors, provides livelihood to more than 70% of its total population. For promoting agricultural growth, reducing poverty and hunger, and promoting environmental sustainability, agricultural investment is essential. National savings have not been able to cope up with the demand of finance in agricultural sector and hence there has been an urgent need of global investments to meet the gap. The Government of India has taken numerous initiatives to promote FDI in various sectors of the economy since the introduction of New Economic Policy 1991. This paper is an attempt to study the trend of FDI inflow in India specifically in agricultural sector and to analyse the challenges faced by the sector in attracting the foreign investors along with the various initiatives taken by the government.
International Journal of Recent Technology and Engineering, 2019
Foreign Direct Investment has a vital errand to do in the rustic part for the Indian financial system. FDI is empowered in the cultivating section to improve the idea of yields. In the Indian Economy the FDI inflows to the cultivating portion since 2010-2018 there is an important perfection in the Agriculture section. Agriculture is said to be the establishment of the nation and it encompasses of 65% of the Indian people. Along these lines, the methodologies are limited in gathering to the agriculture influences a people. In order to forgo the poverty, government has upheld the FDI in Agricultural part and it is most acclaimed way to deal with discard the dejection and longing for. There is an emergency in agrarian part because of the colossal advances and advances which are paid by the banks to the ranchers. The ongoing patterns in the horticultural part have delineated a deceleration in the agrarian development. FDI in Agricultural Sector is one of the copious walks in improving bothers of Indian Farmers. For propelling cultivating improvement, reducing poverty and hunger, and progressing environmental supportability, country theory is crucial. FDI enthusiasm for agriculture requires a logically point by point ask about. Both positive and negative impact should be eagerly examination, with respect to Indian economy. In order to grow the lifestyle for the people and to engage those to use for sound and reflex improvements it is pivotal principal that, capital course of action ought to occur at a higher rate. This paper attempts to consider the impact of FDI in India expressly in green part and to examine the likelihood and confusions looked by the fragment in pulling in the black out budgetary masters adjacent to the various exercises taken by the administrationBased on the results and findings, suitable suggestions and conclusions will be made for the further research.
Review of Research, 2019
FDI is a significant vehicle for the transfer of technology from the developed countries to the rest of the world. Since 1991, the government of India started introducing changes in its economic policy and liberalised its policies towards foreign direct investments. Even before 1991, the foreign investors identified India as an important hub for foreign investment. Once the economy was opened, the inflow of investments into the country increased 20 times more than the previous periods. These investments lead to economic growth through creating new employment opportunities, developing new managerial expertise, new markets and new network for distribution. FDI inflow into India has helped to reach a certain degree of stability in its financial status; its ability to compete with the global economy. Above all the flow of the FDI into the Indian economy made India as a central point of global production chains of MNCs, across various production locations spread around the world. The study finds a strong positive interaction between FDI and India’s international trade. KEYWORDS: FDI Inflow, GDP, Import, Export, Economic Growth.
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. Foreign direct investment (FDI) is generally considered as a key driver of global economic integration. FDI inflows are often seen as important catalyst for economic growth in the developing countries. The objective of this paper is to study the trends of FDI in India post 2010.it also identifies the sources of FDI in India. It also studies the impact of FDI on the growth of various sectors viz a viz agriculture, manufacturing and services sector. For pursuing the study relevant data is collected from various secondary sources. Further correlation & regression technique has been applied using SPSS to find out the results among the variables. The paper concludes that India is one of the top most sought after country for foreign investments because of high degree of specialization, inexpensive labour force and high potential market. Also it examines the relationship between foreign direct investment in agriculture, manufacturing and service sector with the gross domestic product in all the three sectors.
Journal of emerging technologies and innovative research, 2018
Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country like India where foreign investments are being made, it also means achieving technical know-how and generating production and level of employment. Therefore, India has gained favour among investors as attractive investment destination. The World Bank has also stated that the private investments in India is expected to grow by 8.8 per cent in FY 2018-19 to overtake private consumption growth of 7.4 per cent, and thereby drive the growth in India's gross domestic product (GDP) in FY 2018-19. In this paper an effort has been made to develop an understanding of the investment decisions, trading strategies and behaviour of FDI in Indian market. This research is b...
Foreign direct investment is a major source in the main financial source for economic development in India. India is considered as one of the most attractive hub for foreign direct investment. This research paper is an attempt to understand the FDI inflows in different sectors in the Indian economy in the period 2015-16 to 2017-18 and understanding the causes regarding increase and decrease in the FDI inflows. In this paper we have shown the trend analysis for service sector, telecommunications, automobile industry and drugs & pharmaceuticals.
Foreign direct investment is a powerful tool for economic growth of all sectors of any country for strengthening its domestic capital, productivity and help to tackle with unemployment. This paper has been presented to interpret the significance of FDI in the overall growth of Indian economy. The study also covers the trends of FDI (inflow and outflow)
2014
Introduction and Purpose: The examination of FDI and its relationship with the economic growth is one of the controversial issues even after the liberalisation. But at the same time it is well recognized fact that the FDI is one of the key economic growth engines that help in fixing the numerous economic problems. Keeping into consideration a significant role played by FDI in economic development, the present study is conducted with a view to have econometric analysis of FDI in India. Data Base and Research Methodology: The study covered a period of 34 years from 1980 to 2013 and is based on the use of secondary data, which is collected from various published sources. The collected data is analyzed with the help of SPSS and E-Views. The independent sample t-test, multiple regression and ARIMA model are used. Findings and Suggestions: The significant difference exist in the FDI inflows during the pre and post-liberalization era, which
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. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in overall development of the economy. India after liberalizing and globalizing the economy to the outside world in 1991, there was a massive increase in the flow of foreign direct investment. This paper analyses FDI inflow into the country during the Post Liberalization period. Further, the trends of FDI inflow into the country are projected for a period of five years from 2010-11 to 2014-15 using Autoregressive Integrated Moving Average (ARIMA) forecasting technique. The paper tries to examine the various set of factors which influence the flow of FDI Identifying the causes for low inflow and suggestive remedial measures to increase the flow of FDI in India with that of other developing nations in the world.
In the last two decades world has seen an extensive inflow of FDI or foreign direct investment into developing countries. More and more developing countries are competing with each other to attract this investment. Restrictions which were earlier in place on these investments are now being removed as the importance of FDI is being realized.
Foreign Direct Investment plays an important role in Economic Development of any country. Foreign Direct Investment is one of the major instruments of attracting International Economic Integration and development in any economy. It acts as a bridge between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be tackled with the help of Foreign Direct Investment. Foreign investment helps in mitigating the defect of Balance of Payments. The flow of foreign investment is a profit making industry like insurance, real estate and business services and acting as a catalyst for the economic growth in India. This paper analyses FDI inflow in India during the Post Liberalization period. Moreover, the trends of FDI inflow into the country are projected for a period of four years from 2016-2020 using Moving Average Model (MA) forecasting technique and trend analysis. The paper examines the various factors which influence or affect the flow of FDI into the country and suggestive measures to increase the flow of FDI in India and juxtapose the results with that of other developing nations in the world.
Trend of FDI in India and Its Impact on Economic Growth, 2014
Foreign investments are the indispensable factors that help in boosting the growth of Indian economy. With the introduction of liberalisation policy under the finance ministry of Dr. Manmohan Singh in 1991 & with further few policy reforms, India has witnessed a change in the flow and direction of foreign direct investment (FDI) into the country. This paper has made an attempt to analyse the trend of FDI flow into the country and to find the relation between FDI, FII and GDP of the country. India has witnessed the increase in the flow of FDI from US $ 4029 million in 2001-01, to US$ 36396 million on 2013. Furthermore India has witnessed a year-on-year (y-o-y) growth of 24.2 per cent in FDI to touch US$ 3.95 billion in April-May 2013 as against US$ 3.18 billion during the same period in 2012. However, the analysis shows that the country is still far behind in comparison to some of the developing countries like China. The continuous upsurge in foreign direct investments (FDI), allowed across the industries and sectors, has proven that foreign investors have faith in the resilience of Indian markets. Furthermore, the study indicates that flow of FDI and GDP are positively correlated with each other and the country's GDP is showing a positive movement with flow of Foreign Direct Investment in India. The flow of FII and FDI also shows the positive correlation with each other.
FDI plays a vital role for economic development of any developing country. The importance of FDI in India has increased significantly over the last two decades. FDI serves as a link between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP and provides the base and pre requisite for rapid GDP growth. This study is entirely based on the secondary data. This paper makes an in-depth study to analyse the scenario of FDI and its impact on Indian economy. For this purpose empirical data are estimated for the period 1991 to 2014. For this purpose we use some useful statistical tools like correlation and linear regression analysis. For data analysis SPSS software has been used. And we conclude that there is significant effect of FDI on India's GDP.
PARIPEX INDIAN JOURNAL OF RESEARCH
Since the liberalization of trade regulations, Foreign Direct Investment (FDI) has played a crucial role in the expansion of Indian economy, both at the macro and sector levels. The connection between FDI and economic expansion is a debatable subject worldwide. The volume of inflow varies due to a variety of regional, national, and global factors that affect investment choices. Critical policy changes and proactive decision-making demonstrated the government's exceptional resilience, which even helped to mitigate the pandemic's harm. The potential impact of FDI on important macroeconomic indicators is examined in this research paper. In order to analyze the trend of the economic route of future, the study shows the sectoral division of FDI influx. Understanding the divides and patterns helped to provide insight on how the economy was evolving. Changes to regimes are still being made by policymakers in an effort to attract FDI.
This paper basically highlights the determinants factors of FDI and how these factors are affecting FDI which is the most important factors of economic growth. It includes GDP as a dependent variable and FDI, Trade Openness and Exchange rate are the independent variables. This study has used time series data which are from various secondary data sources like IMF, RBI etc. and installed ADF test for checking the stationarity of the data. It has also used Johnson Co-integration test for find out the long run relationship between the dependent variable and independent variables. Signifying the fact that all the variables of the study move together in the long run. If variables are co integrated, the slope coefficients becomes super consistent. Among the long run coefficients, the influence of GDP to inward FDI is the highest which is 2.276. This indicates the role of market size in attracting foreign capital flow.
The present paper is portraying the FDI inflows in India during the April, 2000 to March, 2021. It shows the differences between the subsequent years of inflows of FDI with positive and negative sign of numerical growth and decline. The basic objective this paper is to know the FDI inflows in India. The authors of the present paper have attempted to study the inflows with supported documents and data from the relevant site and computed to the trend analysis. The authors have studied that recent trends in FDI in India, market size, significant FDI announcements made recently, government initiatives, literature review, new FDI policy in 2017, and statistical data towards FDI equity inflows, and Route Wise FDI inflows. The whole paper will assist to the policymakers definitely and also to the budding scholars to study further.
With the initiation of new economic policy in 1991 and subsequent reforms process, India has witnessed a change in the flow and direction of foreign direct investment (FDI) into the country. This is mainly due to the removal of restrictive and regulated practices. Foreign direct investment in India increased from US $ 129 millions in 1991-92 to US $ 40,885 million in March, 2005, and US$ above 1, 00,000 million in 2010 an increase of about 1026 times. However, the country is far behind in comparison to some of the developing countries like China. In so far as growth trend of FDI is concerned, there has been quite impressive growth of FDI inflow into the country during this period. However, negative growth rate is noticed during the period 1998-2000 primarily due to falling share of major investor countries, steep fall of approval by 55.7% in 1998 compared to 1997 and slackening of fresh equity. However, traditional industrial sectors like food processing industries, textiles, etc. which were once important sectors attracting larger FDI, have given way to modern industrial sectors like electronics and electrical equipments, etc. In this paper analyze the FDI flows in the country and also is discussed the direct proportionate of the economic growth of the country.
UTMS Journal of Economics, 2016
Since 2001, the extensive growth in domestic economy were potentially associated with the scale of foreign direct inflows that were largely interconnected with industrial growth, re-shuffling investment policies, and vailability of large market size in India. However, the government remained much restrictive earlier in these issues to protect the domestic entrepreneurs along with to promote the self-efficacy among individuals. Within this framework, this paper is being prepared to observe the degree of effect of foreign direct investment inflow over successive economic parameters such as gross domestic product and Export. Moreover, to define such interconnection, the generalized linear model econometric model has been developed to analyze the overall effect and uni-variate effect over three categorical factors i.e. country, year and foreign direct investment itself. Finally, the results shown, the consistent foreign direct investment inflows is the result of successive years that le...
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