Foreign Direct Investment in India : An Overview and Current Status

The present study highlights the need & quantum of Foreign Direct Investment inflow in India. The foreign investments add a great deal to India’s economy. FDI is an engine in bringing the financial sector at a fast speed. FDI was encouraged by financial liberalization and market-based reforms in many Emergent Market Economies (EMEs). Now, FDI has become a key feature of national development strategies for almost all the countries over the globe. The continuous inflow of FDI has increased to 17445 USD million during the period April-August FY15. The government has taken many initiatives in recent years for relaxing FDI norms in sectors like defence, PSU oil refineries, telecom, power, etc. With the recent PM’s visit to Japan, USA, Australia & other neighbouring countries, the foreign companies are finding lucrative business opportunities to invest in India. This paper tries to study the need of FDI in India. The present paper focuses on the trends of FDI by categorize them into sector-wise, year-wise and country wise FDI inflow in India. The paper also shows the current trend of FDI inflows post the formation of Modi Government.