Foreign Direct Investment ( Fdi ) - 1445 Words

Chapter 1: Introduction 1.1. Background of the Study The advent of globalisation has influenced the scope of economic growth for countries in a rapid manner. It has also notified that with globalisation, the business sector has been able to experience considerable benefits from international domain. The concept of Foreign Direct Investment (FDI) has been gain huge prominences in the recent years for getting considerable benefits for the economy and overall development of a nation. The importance of FDI has been attaining huge prominences among the economic as well as business domain. FDI is one kind of investment that influences the overall economic functioning within a country. FDI is mainly accompanied by multinational companies (MNCs)†¦show more content†¦As per the conducted research, the FDI will enable the under developing nations to grow faster. In the year 2011, the inflow of FDI in India has been able to reach the level of $11.1billion, which is also considerable as a drastic change in the economic activities. FDI in flow and Globalisation has influenced the average GDP rate of countries and the same influenced gradually. It could also be stated that the Indian economy is emerging in nature and provides a greater platform for the companies to enter and establish in the same. With the help of FDI in the developing countries, the nation has been experiencing an adequate growth associated with the industrial as well as infrastructural related. It has also notified that during 1990 -2000 the concept of inward FDI has gain huge prominences regarding the development of Indian economic condition. It has also observed that post-independence Indian government has continued with the application of FDI investment scheme. In the year 1991 after the launching of New Economic Policy, the concept of FDI has gained considerable importance in Indian economy. According to Narayana Babu (2008), Indian economy stands as a third largest economy around the world. As per the purchasing power parity the gross domestic product of the country (GDP) is US $3.611 trillion. As per the measurement of USD exchange rate Indian economy is considered to be one of the 10th largest economies in the