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Volume : III, Issue : IV, May - 2013 FOREIGN DIRECT INVESTMENT: OPPORTUNITIES AND CHALLENGES HARISHCHANDRA S.B Published By : Laxmi Book Publication Abstract : Foreign Investment in India has been the direct outcome of the liberal trade
policies undertaken and implemented by successive governments. The liberalization
program of the government aims at rapid and substantial growth of the country's
economy and besides a harmonious integration with global economy. While foreign
investment in India comprises of investments made by overseas companies in India, the
reverse i.e. outflow of foreign investment from India is also prevalent in the Indian
economy. Foreign investment in India has created some wonderful opportunities in the
country in terms of creating employment and improving the basic infrastructure of the
country.
India is among one of the few markets in the world that offers such high
prospects of growth and earning in virtually all sectors of the economy. The huge skilled
workforce is one factor that ensures that foreign investors get a good return on their
investments.
This study takes a closer look at the structure of Foreign Direct Investments
inflows and outflows from India. It traces the development of India's economic policy
regard FDI and the resulting changes in both inflows and outflows. The expansion of
FDI into and from India has been accompanied by a rapid economic growth and an
increasing openness to the rest of the world.
Foreign Investment in India has huge potentials. However, foreign investment
in India has its own share of advantages and disadvantages. Overseas investors must
prepare themselves well in advance to face with adversities and deal with them properly.
Some of the drawbacks that investors may have to face are bureaucratic hassles,
infrastructural deficiencies, power shortages and sometimes political uncertainty.
Despite these uncertainties, India presents a huge potential to global players to invest in
the market. Many leading overseas brands have already invested while some of the
companies have plans in the pipeline to invest in India. Keywords : Article : Cite This Article : HARISHCHANDRA S.B, (2013). FOREIGN DIRECT INVESTMENT: OPPORTUNITIES AND CHALLENGES. Indian Streams Research Journal, Vol. III, Issue. IV, http://oldisrj.lbp.world/UploadedData/2316.pdf References : - Removing its long held restrictive foreign investment policy in 1991,India sought to compete with the successful Asian economics to get a greater share of world's FDI.
- Ongoing initiatives, such as further simplification of rules and regulations, improvement in infrastructure are expected to provide necessary impetus to increase FDI inflows in future.
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