A STUDY ON FOREIGN DIRECT INVESTMENT IN INDIAN ECONOMY

S. Lokesh; C. Jayanth Kumar; Ch. Ankaiah; M. Anusha; G. Srinath; P. Sai Kumar

S. Lokesh Student, Audisankara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.
C. Jayanth Kumar Student, Audisankara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.
Ch. Ankaiah Student, Audisankara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.
M. Anusha Student, Audisankara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.
G. Srinath Student, Audisankara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.
P. Sai Kumar Student, Audisankara College of Engineering & Technology (Autonomous), Andhra Pradesh, India.

Keywords: Foreign Direct Investment, FDI In India, Institutional Investments, Cross-Country Movement

Abstract

The Foreign direct investment plays a crucial role for the development of nation. The developing economies are taking advantage of foreign direct investment to strengthen their economy in many aspects. In fact, the Inflow of FDI will facilitate to create huge employment opportunities, transformation of expertise, skills and technology will move from one country to another country. The FDI will take place through green field FDI or Brown Field FDI. There are many varieties of foreign investments like Foreign Direct investment, Foreign Institutional Investment and Foreign Portfolio Investment. However, FDI is a direct investment on physical assets and will have control over management decisions feasibility as compared to other sorts of investments. There are different versions on FDI, some of the evidences proven about disadvantages and vice versa. This paper will take the help of secondary data sources to explore the evidences/advantages of foreign direct investment in India. It is not depending on subjective analysis; it will try to prove the concept through objective analysis.

References

Gupta, P., & Singh, A. (2016). The causal nexus between foreign direct investment and economic growth: a study of BRICS nations using vim and Granger causality test. Journal of Advances in Management Research.
Khatun, F., & Ahamad, M. (2015) foreign direct investment in the energy and power sector in Bangladesh: Implications for economic growth. Renewable and Sustainable Energy Reviews, 52, 1369-1377.
Athukorala, P. C. (2014). Intra-regional FDI and Economic Integration in South Asia: Trends, Patterns, and Prospects. South Asia Economic Journal, l15, 1- 35.
Khan, REA, & Hye QMA. (2014). Foreign direct investment and liberalization policies in Pakistan: An empirical analysis. Cogent Economics and Finance. Retrieved from http://dx.doi.org/10.1080/23322039.2014.944667
Duperon, Williom O., & Cinar, E. M. (2010). Global Competition versus Regional Interest: FDI and Pharmaceuticals in India. Journal of International Commercial Law and Technology, 5, 181-200.
Rai, R. K. (2009). Effects of the TRIPs Mandated in actual Property Rights on Foreign Direct Investment in Developing Countries: A case study of the Indian Pharmaceutical Industry. The Journal of World in actual
Property, 11, 404-431.
Bransteeten, L., Fisman, R., Foley, C., & Saggi, K. (2007). In actual Property Rights, Imitation, and Foreign Direct Investment: Theory and Evidence (NBER, Working Paper #13033). National Bureau of Economic Research, Cambridge.
Aditya, Bajaj K. R., & Swastik, N. (2007). Globalization in the Indian Pharmaceutical Industry- FDI spillovers and implications on Domestic Productivity, 1991-2007. The Research Project, IIM Ahmadabad.
Narula, R., & Lall, S. (2006). Understanding FDI-Assisted Economic Development. Rutledge. London, New York.
Blomstrom, M., & Kokko, A. (2005). The Economics of Foreign Direct Investment (NBER Working Paper #168). National Bureau of Economic Research, Cambridge.
Lyamota, K. (2003). Human Capital Formation and FDI in Developing countries (OECD Working Paper #211). OECD Development Centre.
Pradhan, J., & Prakash, A. (2003). Foreign Direct Investment and Economic Growth in Developing Countries, Further Evidence from Panel Data. The Asian Economic Review.