Foreign Direct Investment in India: An Analysis Dipon Ghosh

Abstract

The paper briefly explained the concept and definitions of Foreign Direct Investment (FDI) and how it is different from other types of foreign investment. The paper analyzed the theoretical background (OLI paradigm) for the occurrence of FDI both for the investing country and the host economy. At last, the inflow of FDI in India since 1991 has been discussed briefly. It has been explored that liberal economic policy has resulted in increased FDI inflows and the lion's share of FDI inflows has been in the service sector and from Mauritius. But the paper concluded that actually the US based MNCs have routed their investment in India via Mauritius.