FOREIGN DIRECT INVESTMENT (A BOOSTER DOSE FOR INDIA’S ECONOMIC GROWTH)

Foreign Direct Investment (FDI) is one among the most engines of globalization. During this globalized era, foreign capital has assumed lots of significance in accelerating trade and business activities of a nation and for increasing the share of a rustic in international trade. In recent decades the expansion of FDI has served as a catalyst for investment in developing countries. FDI brings the foremost needed capital, improved managerial skills, modern marketing techniques, access to modern technology and global links. Since 1980 both developed and developing countries are trying to draw in FDI through providing incentives by adopting better deregulation policies and reliance on economic process in the economies. Foreign Direct Investment is a necessary tool for the economic process and development. Most of the governments improve FDI as first priority, mostly in low income and transition economies. Foreign Direct Investment not only promotes capital formation but also because it can attract the massive value of the capital stock. On the opposite hand economic process is the permanent development in the capacity to satisfy the demand for goods and services, resulting from improved production scale and increased productivity (innovation in products and processes). Economic process is when the general level of production by an economy increases. The concept of overall level of production is a very important one. This implies that the economy is usually producing more of all goods and services. Theoretically, the whole production of an economy should be roughly adequate to the full income like wages, rent, interest and profit earned by the economy.

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Keywords: Foreign Direct Investment, Economy, International Rewards, Management, Enterprises.


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