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Asian Journal of Multidimensional Research (AJMR)
Year : 2019, Volume : 8, Issue : 2
First page : ( 43) Last page : ( 49)
Online ISSN : 2278-4853.
Article DOI : 10.5958/2278-4853.2019.00030.2

An analysis of the share of top ten investing countries in foreign direct investment in India

Murugesan B.1, Nagasubramaniyan G.2

1Guest Teacher, Department of Economics, The Gandhigram Rural Institute, Tamil Nadu, India Email id: ecomurugesan@gmail.com

2Associate Professor, Department of Humanities, National Institute of Technology, Trichy, Tamil Nadu, India Email id: nagus@nitt.edu

Online published on 4 March, 2019.

Abstract

Foreign direct investment can play an important role in the development process of host economies. Since the launch of the reforms in 1991, India has been one of the fastest growing countries in the world with the active participation of FDI in the economy. The FDI has been recognized as an important driver for economic growth and development. First, this study elaborately analyses the trend and growth of FDI inflows in India during the study period from 2000–01 to 2017–18. This analysis clearly shows that the inflow of FDI is a significant effect on economic growth in the nation. Secondly, the main focus of this study analyses the share of top ten country-wise FDI inflows received in India from 2004–05 to 2017–18. This analysis clearly found that the following top ten countries has invested more FDI inflows in India such as, Mauritius, Singapore, U.S.A., Netherlands, Japan, UK, Germany, Cyprus, France, and UAE. This study concludes that, FDI has helped to economic growth in India. This study suggests that the government must attract the foreign investors to invest in India. FDI can help to raise the output, productivity and trade at the sectorial level of the Indian economy.

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Keywords

Double Taxation, FDI, Economic Growth, Reformsand Research and Development.

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