TREND AND PROGRESS OF FOREIGN DIRECT INVESTMENT.pdf

Foreign direct investments have been allied with improved the economic growth of emergent countries. Foreign direct investment plays as an important role in the country fiscal growth that's why every country is in a race attracting more and more FDI into the country. In this situation Transfer to Financial Assistance, Skill & knowledge based development, Technology, employment Generation and Create productivity, Improve Forex position to home & host countries and boost the export volume of goods to an alternative country. All companies are entering in the two ways of automatic route & government route. Here with this paper we are trying to appreciate the recent circumstances, strength of FDI equity inflows in India such as year wise FDI, Country wise FDI, sector wise FDI in India, the main sources of FDI inflow, etc. The lessons purely based on Secondary data which have been collected through various reports of the Ministry

A country's economic growth depends on the policies adapted by its government to facilitate investment, mainly in economic and industrial sector. FDI has become a key to national development strategies for almost all the countries in the world. FDI is defined as investment made to acquire lasting interest in enterprise operating outside the country of the investor. FDI has played its role in rapid economic growth of Southeast Asian countries. India has embarked on ambitious plan to emulate the success of her neighbors to east and is trying to sell herself as a safe and profitable destination for FDI. As a result the Indian government over the years has brought many drastic changes in the rules and regulations to improve the climate for foreign investment in India. The FDI inflow are becoming more and more vital for accelerating the desired degree of growth and development of different industrial sectors. The FDI equity inflows in March 2016 went up by 16.5 per cent to $2.46 billion, according to data released by the Department of Industrial Policy and Promotion (DIPP). Of the FDI inflows (equity) in FY'16, services sector (including financial, banking, insurance, non-financial / business, outsourcing, R&D, courier, technology testing and analysis) attracted maximum investments of $6.88 billion followed by computer hardware and software ($5.90 billion), trading business ($3.84 billion) and automobile industry ($2.52 billion). The paper studied the level of FDI in different sectors of Indian economy, its growth rate and its relevance with economic growth. A country's economic growth depends on the policies adapted by its government to facilitate investment, mainly in economic and industrial sector. FDI has become a key to national development strategies for almost all the countries in the world. FDI is defined as investment made to acquire lasting interest in enterprise operating outside the country of the investor. FDI has played its role in rapid economic growth of Southeast Asian countries. India has embarked on ambitious plan to emulate the success of her neighbors to east and is trying to sell herself as a safe and profitable destination for FDI. As a result the Indian government over the years has brought many drastic changes in the rules and regulations to improve the climate for foreign investment in India. The FDI inflow are becoming more and more vital for accelerating the desired degree of growth and development of different industrial sectors. The FDI equity inflows in March 2016 went up by 16.5 per cent to $2.46 billion, according to data released by the Department of Industrial Policy and Promotion (DIPP). Of the FDI inflows (equity) in FY'16, services sector (including financial, banking, insurance, non-financial / business, outsourcing, R&D, courier, technology testing and analysis) attracted maximum investments of $6.88 billion followed by computer hardware and software ($5.90 billion), trading business ($3.84 billion) and automobile industry ($2.52 billion). Definition of 'Foreign Direct Investment-FDI' An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies.

There has been tremendous growth of FDI after the launch of make in India initiative i.e. from Oct 2014 to March 2017 is US $99. 72billion.It shows an increase of 62% where manufacturing sector have witnessed a growth of 14% as compared to previous 30 months before launch of make in India initiative. Business entities from various countries like Japan, France, South Korea and China announced that they also intend to endow in India in this make in India scheme. The main goal for the Make in India scheme was to minimize unemployment and increase talent augmentation in various sectors of the economy. According to the Department of Industrial Policy and Promotion, " FDI inflows, under the approval route (which requires prior government permission) increased by 87% during 2014-15 with an inflow of $2.22 billion. More than 90% of FDI was through the automatic route. Also in 2014-15, foreign institutional investment rose by an unparalleled 717% to $40.92 billion ". With the continuous increasing trends in GDP, even after demonetization, India has marked its magnetism as one of the fastest growing economies of the world. It is ranking among the top 10 striking destinations for various investments. The present study is focused on the trend and pattern of FDI inflows since launch of make in India initiative using the quantitative data which has been collected from various reports like Reserve Bank of India Database on Indian Economy, database of department of Industrial Policy and Promotion and website of make in India. Liberal economic reforms by the government are opening new sectors to attract foreign direct investment. FDI policy amendments are introduced to bring ease of doing business and gear up the pace of foreign investment in India.

The present paper discusses the recent changes that have taken place in India's Investment policies in various sectors namely-food products manufactured/produced in India, defence, broadcasting carriage services, pharmaceutical, civil aviation, private securities agencies, single brand retailing, animal husbandry, etc. It also analyses the change in the inflow of FDI, after these policy changes, over the previous year's FDI inflow during the same period. Along with this, it shows the change in investment from the top ten investing countries, in different sectors and in different states during the same time period.

For the developing country like India foreign investment play an important role in the development of the nation. After liberalisation India’s trade polices became investment friendly country. India is one of top ten industrialised countries in the world. Foreign direct investment is fund inflow or outflow between the countries by which one country can able to gain same benefit from their investment where as other can exploit opportunities to enhance productivity and improve its performance.

JOURNAL OF ECONOMICS AND SUSTAINABLE DEVELOPMENT, 2013

FDI has been one of the most distinguished factors for financial aid and growth for developing countries. The paper examines the present and future status of FDI in India. The methodology used in the paper is divided into two parts: first, determining the effect of FDI (equity inflow) on total FDI inflow through regression analysis, F – Test, and test of auto correlation through Durbin-Watson test, and the second part studies the trend of FDI inflow and forecast of the inflow till 2016 through trend analysis. The paper interprets that the FDI equity inflow is a significant determinant of total FDI inflow in India. The paper provides a composite view of the present status of India in world FDI flow, examines the situation of FDI retailing (single brand and multi brand) in India and determines the advantages and drawbacks of FDI flow on Indian economy. Key Words: FDI, retailing, sectoral analysis, regression analysis, auto correlation, trend analysis.

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)

Foreign Direct investment plays a very important role in the development of the nation. Sometimes domestically available capital is inadequate for the purpose of overall development of the country. Foreign capital is seen as a way of filling in gaps between domestic savings and investment. India can attract much larger foreign investments than it has done in the past. The present study has focused on the trends of FDI

Developing countries, increasingly see Foreign Direct Investment (FDI) as a source of economic development, modernization and employment generation, and have liberalized their FDI regimes to attract investment. Given the appropriate host country policies and a basic level of development, FDI triggers technology spillovers, assists human capital formation, contributes to international trade integration, helps create a more competitive business environment and enhances enterprise development. All these contribute to economic growth. Existence of real business opportunities is one of the key factors in attracting FDI. The present paper is an attempt to analyse the current position of FDI in India with specific reference to the route through which it is coming and the sectors in which it is coming.