FDI’s in India-An Analysis

Abstract

The process of LPG (Liberalization, Privatization and Globalization) which was started in the year 1991 in India led to numerous developments in the country which attracted investments from various countries in the world. The Government of India slowly increased the percentage of investment from foreign companies from zero to full investment in majority sectors. This government policy has welcomed the setup of foreign companies in collaboration with Indian companies in some sectors and individual in other sectors. The concept of foreign direct investment has been become a buzzword within no time. India has been able to attract better FDI’s than the developed countries even during the crisis period also. Especially in the recent years the FDI in India has been following a positive growth rate. FDI in India has enabled to achieve a certain degree of financial stability; growth and development to sustain and compete in the global economy. In this paper an attempt is made to analyze the flow of FDI’s into India.