Recent Trends of Foreign Direct Investment in India: A Review

Abstract

Nations desiring for sustainable economic growth has to explore global opportunities and FDI (Foreign Direct Investment) helps in achieving significant development for the economy. FDI is considered to be the most essential medium of development in the emerging sectors of an economy. India is an emerging market globally due to its various prospering aspects like cheap labour, greater market size and abundance natural resources etc. which attract foreign investors for better prospects in various sectors. The present paper aims to study the trends of FDI in the country and understand the reason behinds its fluctuations. This study was conducted to investigate the trends of FDI in India and to find out the impact of Make in India policy on FDI. The study also aimed to understand the role of FDI for the development of a nation. It was found that India succeeded in attracting foreign investors after the launching of Make in India policy and various other government reforms. In India, various sectors are emerging, for example-tourism, transport, communication, health and education. These sectors desperately require FDI for its prosperity and development. Besides, FDI is also an ideal solution for socioeconomic problems like unemployment, deficit BOP (Balance of Payment), technological incapability and lack of sufficient foreign exchange. To get the desired level of economic growth, the best outcome comes in the form of FDI where a developed country invests through its capital and latest technology in a developing nation and explores its natural and human resources.