Role of Foreign Direct Investment (FDI) in Different Sectors

Abstract

India has been a most important recipient of foreign direct investment in the greater part of its different sectors. It also plays an important role in the development of a country. The objective of the present paper is to provide a broad outline on foreign direct investment with the context of different sectors. It also point out the sector-wise distribution of FDI inflow to know about which has concerned with the chief share. The present study is based on secondary data and the secondary data have been collected from different sources i.e., fact sheets on foreign direct investment, Annual reports of Reserve Bank of India, the web site of UNCTAD and different journals. The study used a data from 1991-92 to 2011-2012 (post-liberalization period). The present paper also discusses the various problems about the foreign direct investment and suggests the some recommendations for the same. In the present study found that, Indian economy is mostly based on agriculture. So, there is a most important scope of agriculture services. Therefore, the foreign direct investment in this sector should be encouraged.

Keywords: Different sectors, Economic growth, Foreign direct investment (FDI).