Articles related to Impact of FDI

Importance of outward FDI to the Indian economy

Trade liberalization in India post 1991 has transformed the scenario of capital influx in the country and has triggered the growth of secondary and tertiary sectors significantly. The growth dynamics of Indian economy especially the service sector propelled forward. Due to increased revenues, outward Foreign Direct Investment (FDI) (i.e. FDI outflow) of India has also been significant (Someshu., 2010). Given the fact that FDI inflow and its impact in India is a major area of discussion and interest, similarly outward FDI can be also contemplated as an important subject of discussion. Outward FDI is a mechanism through which a domestic firm expands its operations to other countries. Outward FDI in India mainly occurred after the year 2003. During the economic crisis in the year 2008-09. Due to which the outward FDI flow increased significantly. The following graph depicts the trend of the flow during the past 15 years. Read more »

Reforms in policies and regulations of FDI in India

Foreign Direct Investment (FDI) has been one of the most critical factors in the economic health of emerging markets like India. It is the process of establishment of business or carrying out business activities in the host country by a foreign country. The Government of India had undertaken major reforms in the country’s FDI policies in 1991. The most recent policies allowed for increasing the FDI limit. Read more »

Impact of FDI on the employment sector of India

Foreign Direct Investment (FDI) can be contemplated as one of the most decisive catalysts of generating employment in India. Opening up of trade barriers in India post trade liberalization in the year 1991 has witnessed the influx of FDI at a great extent. Read more »

Manufacturing industries as the major source of air pollution in India

Air contamination is defined as the presence of toxins that affect the environment (Vallero 2011). India, as a rapidly developing nation, needs to manage its ecological issues well to minimise contamination of air, water and soil. The major factors for air pollution in the country are:

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Impact of gross domestic product on inflow of foreign direct investment in India

The inflow of foreign direct investment (FDI) in India has paved the path for the economical and financial development of a country. There has been significant increase in economic growth after the liberalization policies undertaken by India in 1991 (Nagaraj 1997). Though the journey to growth has not always been a smooth trend for India. However, the reformation has improved the gross domestic product (GDP) over the years. It has indicated sound growth especially in the recent years when the inflow of foreign capital has increased immensely (Sahni 2012).

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Relating exchange rate and inflow of foreign direct investment in India

Foreign Direct Investment (FDI) is an international flow of capital where a company or individual of one country makes an investment in another country. The main objective of such investment is to establish business operations which will generate a lasting interest in the investee economy (Goldberg, n.d.). Read more »

Impact of inflation rate on the inflow of foreign direct investment in India

As reviewed in previous articles, foreign direct investment (FDI), is an investment made by a foreign investor in a host country. Foreign investment is considered to be an integral part of an economy as it helps in accelerating the economic development. Read more »

Political and legal system and foreign direct investment in India

India is gaining importance globally as a rapidly developing economy. Investors from all over the world has showed faith in the flexible Indian economy. One of the major factor for rapid economic growth in India after 1991 can be attributed to huge inflow of foreign capital. There are various determinants which led to such huge capital inflow in India. Political and legal system is one of the key factors. Read more »


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