Impact of FDI on Indian Economy – An Analytical Study.

Thomas Asha E. (2016). Impact of FDI on Indian Economy – An Analytical Study. International Journal of Business and Administration Research Review, 1, (4), 91-94

9 Pages Posted: 14 Mar 2018

Date Written: 2016

Abstract

Foreign Direct Investment (FDI) refers to an investment made by a company based in one country in to another company based in other country. FDI is often preferred over Foreign Institutional Investments (FII) as it considered to be the most beneficial form of foreign investment for an economy. FDI plays a multidimensional role in the overall development of any economy. It provides a new source for capital, can lead to technological up gradation, skill enhancement and allocative efficiency effects. While FDI is expected to create positive impact on economy, it has also brought in certain negative impact on Indian economy during the past few years. The present study is conducted to study the relationship and analyze the impact of FDI on Indian economy. Flow of FDI for the past 15 years was taken for study( 2000-2015). The impact was studied by testing the correlation with the country’s GDP and Stock Market Indices. Sensex and Nifty were considered as the representative of Indian Stock Market. The study concludes that flow of FDI in to the country plays a dominant role in deciding the stock market movements.

Keywords: FDI, Indian Economy, Sensex, Nifty

JEL Classification: G15, G18

Suggested Citation

Thomas, Asha E., Impact of FDI on Indian Economy – An Analytical Study. (2016). Thomas Asha E. (2016). Impact of FDI on Indian Economy – An Analytical Study. International Journal of Business and Administration Research Review, 1, (4), 91-94. Available at SSRN: https://ssrn.com/abstract=3130794

Asha E. Thomas (Contact Author)

Mahatma Gandhi University ( email )

Kalamassery
Kerala
India

HOME PAGE: http://www.stpauls.ac.in/static/contactus.aspx

Register to save articles to
your library

Register

Paper statistics

Downloads
543
Abstract Views
2,473
rank
51,812
PlumX Metrics