FOREIGN DIRECT INVESTMENT (FDI): INVESTOR – FRIENDLY POLICY REGIME IN INDIA

Annadurai AR

Abstract


Foreign Direct Investment (FDI) is one of the foremost channels of foreign investment in India. The concept of Foreign Direct Investment is now a part of India’s economic future but the term remains vague to many, despite the profound effects on the economy. India is the second fastest growing economy after China, has lately been a major recipient of Foreign Direct Investment funds driven by the strong fundamentals and growth opportunities.  Even though most of the developed countries like America and Arab Emirates were slashed by the global meltdown, fortunately India escaped from this mayhem by its strong fundamental in the financial system and other monetary aspects.

Therefore India is called safe haven for foreign investment.  The FDI investment mostly invades into the equity markets in the recent scenario.   But some time the investment flow was interrupted or reduced due the some reason such as economic turmoil, political instability, RBI intervention, and global mayhem.  Hence the study intended to analyze the significance of investor –friendly policy regime on FDI in India.

Keywords: FDI, RBI, Recent Policy Regime, Industries and Investments.


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ISSN : 2251-1555