FDI in India - The Growth Trajectory

Abstract

Foreign Direct Investment (FDI) has been viewed as a power affecting economic growth directly and indirectly during the past few decades. Our Prime Minister has also underlined this fact through his famous quote, “FDI for me is First Develop India and then Foreign Direct Investment”. It is not only a critical driver of economic growth but also a chief source of owned financial resource for India. Since 1991, the regulatory environment for foreign investment has unfailingly been eased by India, catapulting it into the spot of one of the fastest-growing economies in the world. It has been ranked (9th in terms of FDI inflows for 2016 by UNCTAD) among the top attractive destinations for inward bound investments in the world.