Foreign Direct Investment in India: Status, Challenges and Opportunities

Abstract

With the initiation of economic process, developing countries, notably those in Asia, are witnessing a high surge of FDI inflows throughout the past two decades. Although Republic of India has been a comer to the FDI scene compared to alternative East Asian countries, its hefty market potential and a liberalized policy regime has sustained its attraction as a favourable destination for foreign investors. This analysis paper aims to look at the impact of FDI on the Indian economy, notably when 20 years of economic reforms, and analyzes the challenges to position itself favourably in the global competition for FDI. The paper provides the foremost policy implications from this analysis, besides drawing attention on the complexities in deciphering FDI information in Republic of India.