India and China Trade Relationship- A Study of FDI Inflow and Outflow

Foreign Direct Investment is the process whereby residents of one country (the home country) acquire ownership of assets for the purpose of controlling the production, distribution and other activities of a firm in another country (the host country). The present study analyzed the inflow and outflow of funds in India and China and the data has been obtained from various reports of IMF, RBI, economic journals of China and India and t- test is used to obtain the result and further it is found that there is a substantial amount of money has been invented in both the countries and there is a significant difference in the amount and patterns of investment of funds.