Articles related to Impact of FDI

Low employment rate in the service sector cannot sustain high growth rate for long

The service sector is one of the fastest growing sectors in India. Contribution of this sector in gross value addition in Indian economy was 52.97% during the financial year 2014-15 (Planning Commission 2015). India witnessed a rapid expansion in this sector after the liberalisation of the economy in 1991. The main reason for such rapid growth is due to the huge knowledge base and high inflow of foreign investment (Mukherjee 2013). Foreign direct investment has a great role to play in the overall development of the Indian economy. It brought technological gradation with it and encouraged the growth of several sectors including the service sector (Sirari & Bohra 2011). Read more »

Foreign direct investment in the manufacturing sector of India

Indian liberalisation began in early 1990s’ leading to gain in momentum of foreign direct investment  inflows into the country. However it was only after 2000 that the investment became significantly higher (Bibek Rya Chaudhuri, Pradyut Kumar, 2013). During the initial phase of liberalisation inflows of the foreign direct investment in manufacturing sector was highest as compared to the service sector. However over the period of time service sector has emerged as the major sector attracting most of the foreign investment  (Akhtar, 2013). Read more »

Inflow of foreign direct investment in the agricultural sector of India

The agricultural sector in India is the main source of livelihood for more than 70 percent of the rural population. Similarly half of the households in the rural population show some sign of poverty (Singh & Walis 2015). In this scenario if the main aim of the Indian government is economic development and poverty reduction, then the priority should be the growth of the agriculture sector.

One of the major reforms in the agriculture sector in recent years is the inflow of foreign direct investment. Even though most of the areas in agriculture sector is still closed for the foreign investment. There has been significant increase in foreign investment in several sectors.
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The Indian economy before and after the economic reform

Foreign direct investment has been recognized as an imperative driver of economic growth and development. One of the most prominent developments during the last two decades is the spectacular growth of foreign direct investment in the global economic scenario (Goel et al. 2012). Prior to  independence, exports in India were primarily agricultural products and the industrial products were backward and underdeveloped. Over the last six decades, the Indian economy has completely revolutionized. Read more »

Manufacturing sector in India before and after the liberalisation of 1991

A well-developed manufacturing sector is needed to provide the basic needs of the population. Similarly to  lead to an increasingly diversified economy and to give rise to social psychology and institutional changes manufacturing sector is a principal indicator of economic development of a nation (Mohommad 2010). Identifying the need of a well-developed industrial sector, in 1951 India’s Prime Minister Jawaharlal Nehru announced that India had to become industrialise as fast as possible. Read more »

Trends of foreign direct investment in India

Foreign direct investment in India is the most influential financial resource, especially for the emerging sectors. Foreign direct investment helps in exploiting a wide range of opportunities and utilizing the same to attain the desired level of development in the nation (Gola, Dharwal, & Agarwal, 2013). The world economy including both the developed countries and other emerging countries are facing some varying trends of foreign direct investment in recent years. Read more »

Overview of foreign direct investment in pre and post economic reform in India

The foreign direct investment drives the economic growth of a country. Foreign direct nvestment plays a major role in the advancement of technology, generating employment opportunities and promoting overall development of the economy. The growth of foreign direct investment in India was retarded by the introduction of Monopolies and Restrictive Trade Practices Act (MRTP) and Foreign Exchange Regulation Act (FERA) in the beginning of 1970’s (Shah & Parikh, 2012). Read more »

Comparison of the Indian and Chinese economy

China is the fastest growing economy in the world and India is the second fastest. Together they account for a disproportionate share of global GDP growth today. Both the countries are experiencing double-digit growth, resulting in millions of people moving from poverty to middle class affluence in both the countries (Deloitte, 2006). Yet that is where the similarities end. Read more »

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