A Study on Foreign Direct Investment: A Booster of Economic Development | Original Article

ABSTRACT:

Investment in various sector of economy is a standout amongst the most critical instruments for the growth of an economy, since it prompts employment, export, import substitutions, makes a good balance of payment and so on. Foreign direct investment assumes an imperative role in resource preparation as well as brings most recent innovation. It additionally fills the gap among investment and saving. India is a developing country and it needs enormous investment in different sectors of the economy to accelerate the economic growth. In the present time is the time of globalization, liberalization and privatization, the role of foreign direct investment can't be overlooked. In light of this point, the present investigation has been attempted to discover the impact of foreign direct investment on the economic growth of Indian economy. The purpose behind choosing of this subject for research is that it is burning issue in the developing countries. The developing countries have opened up their economy for FDI. Every one of these countries is making sincere endeavors to draw in FDI. The Indian economy opened up for FDI after 1991. Before that the growth rate of India was low and it was classified Hindu Growth Rate, which ranged between 3 to 4 percent from 1950 to 1980. In the wake of opening the economy, there has been significant increase in the growth rate and it achieved 7 to 8 percent up to 2014-15. Presently question is emerging that this growth rate is the result of foreign direct investment on account of liberalizations and globalization of Indian economy.