Removal of trade barriers presented a massive opportunity for the foreign nations to foray into the Indian market. The local workforce also embraced the opportunity of FDI influx for making good fortune.
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 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).
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.).
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.
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.
The current trends of the foreign direct investment show a stark increase in the Asian developing countries. However the flow has been declining in other regions, especially in the developed economies. Inflow of foreign funds to India nearly doubled, reaching an estimated US$59 billion (Unctad 2015).
Growth rate of India before the economic liberalisation was slow and was referred to as the “Hindu rate of growth”. With economic reforms in the 1990’s, the Indian economy not only allowed foreign investment but also shifted its approach from Socialist to Capitalist or market based approach. The growth rate has since accelerated, however India is way behind in terms of development index. Furthermore, climate change and environmental concerns have become a major concern for the world. As a result it will be a major challenge for India to balance between higher growth and the environment.