Insights on India’s FDI Policy Contributions and Implications to the Development of Economy

Abstract

Foreign Direct Investment (FDI) is considered as one of the sources of foreign investment and one of the best avenues available for the economies to develop themselves . It is a type of investment made by one enterprise in a country located outside its political borders. FDI has gained relevance globally as an instrument of economic integration and provides access to the innovative technology which promotes the efficiency and productivity of the existing production capacity and generates new production opportunity in the emerging economies.. In order to attract more and more FDI’s, the GOI took several initiatives to improve the foreign investments and kept on amending its FDI policies periodically.