Foreign Direct Investment in Indian Scenario: An Empirical Study of Service Sector

Abstract

Service sector is one of the fastest growing sectors in India. Its contribution to Indian economy has been manifold which is about 55.2% in Gross Domestic Product and is growing by 10% annually. One of the important things observed is that the share of Service sector in total Foreign Direct Investment in India has increased by leaps and bound in the few past years. One of the important observations that can be made is that during 1991 to 2005 the share of service sector in Total FDI in Indian Economy was just 9.76% occupying 5th position, but its share in total FDI has increased to around 21% occupying the 1st position in 2011 as per the report available through DIPP website.