Advanced Search
MyIDEAS: Login to save this article or follow this journal

Foreign Direct Investment and Economic Development of India: A Diagnostic Study

Contents:

Author Info

  • A S Shiralashetti
  • S S Hugar
Registered author(s):

    Abstract

    Capital is the life blood of any production and distribution activity, and it plays an important role among the factors of production. The need of capital arises not only at the beginning of the venture, but also throughout the life span of the venture. However, capital, especially when in short supply, can be the limiting factor for starting, expansion and diversification of a venture. In view of the economic crisis on the one hand, and the perceived importance of foreign capital in the economic development of the country on the other, the Government of India has been making continuous efforts to attract foreign capital during the post-liberalization period. The efforts include providing concessions in taxes, announcing tax holidays and increasing the investment cap in various sectors of the Indian economy. As a result of the continuous efforts by the Government of India, there has been steady rise in the inflow of foreign capital on the one hand, and overall progress in various sectors of the Indian economy on the other. According to the Reserve Bank of India (RBI), India has received total Foreign Direct Investment (FDI) inflows of $50.1 bn since 1991. There has been tremendous progress in the various sectors of the Indian economy due to the inflow of foreign capital. The GDP growth rate has crossed 9% due to boom in manufacturing and service industries. Further, the Sensex points in Indian stock market have crossed 19, 000 points on October 15, 2007. In addition, the foreign exchange reserves have crossed $204 bn at the beginning of May, 2007. In addition, there has been improvement in the employment position, standard of living, infrastructure development, health and hygiene, GDP and NDP due to FDI inflows in India. The main objectives of the present study are: 1) To examine the year-wise, country-wise, sector-wise and the RBI’s region-wise FDI inflows in India, 2) To examine the impact of FDI on the growth of GDP and contributions from various sectors of economy towards GDP, 3) To analyze the trends in exports, and 4) To examine the impact of FDI on employment position, inflation and stock market of India. The study is primarily based on secondary data collected from websites, journals and newspapers. Statistical tools like percentage, common size statements and trend analysis are used to analyze the data.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by IUP Publications in its journal The IUP Journal of Managerial Economics.

    Volume (Year): VII (2009)
    Issue (Month): 1 (February)
    Pages: 54-69

    as in new window
    Handle: RePEc:icf:icfjme:v:07:y:2009:i:1:p:54-69

    Contact details of provider:

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:icf:icfjme:v:07:y:2009:i:1:p:54-69. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.