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Asian Journal of Research in Business Economics and Management
Year : 2013, Volume : 3, Issue : 9
First page : ( 218) Last page : ( 226)
Online ISSN : 2249-7307.

Emerging Trends of FDI inflows in India: Responses and Challenges

Dr. Uppal R.K.1, Juneja Amit2

1Principal Investigator, UGC Financed Major Research Project, D.A.V. College, Malout (Punjab)

2Research Scholar, Dept. of Economics, Panjab University, Chandigarh

Online published on 5 September, 2013.

Abstract

Gone are the days of closed economies. Today every economy is of open economy type doing international trade for the fulfillment of its requirements of goods and services and foreign exchange. It is rightly said that if in modern era, any UDC or developing country think of its growth and development independently, it will never succeed. It has to take help of other countries and allow them to invest in its country by the way of FDI. India is also a developing country and for its growth and development it is also allowing FDI of different countries in different sectors of it. With this view, a conclusion oriented study is conducted w.r.t. FDI inflows of different countries in India in different sectors. The study concludes that Japan, U.K., France, Spain and Luxembourg's contribution to FDI inflows in India has increased tremendously during the study period, while Mauritius and Germany's share has declined. As far as the sectoral FDI inflows are concerned, it is concluded that FDI inflows in sectors like Communication Services, Retail & Wholesale Trade, Restaurants and Hotels has increased over time while Trading, Mining, Transport, Real Estate Activity sectors witnessed a decline in FDI inflows.

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Keywords

Foreign Direct Investment, Globalization, Liberalization.

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