PAPER PRESENTATION: GLITZ (Expressive)

TOPIC: IMPACTS OF FDI IN INDIA

BY
G.MAHENDAR
P.VIJAYANARAYANABHOOPATHY
DEPARTMENT OF MANAGEMENT STUDIES
UNIVERSITY OF MADRAS
CONTACT: 9884037018, 9840634547
Abstract
In recognition of the vital contribution of Foreign Direct Investment (FDI) in the accelerated
economic growth, India initiated a slew of economic and financial reforms in 1991. As a result
FDI is encouraged in almost all the economic activities; India emerged as the second most
attractive destination for FDI after China
Our paper clearly compares the economic position of India before and after FDI with impacts
and leverages its benefits and challenges also draws substantial conclusion over enrichment of
FDI.
In pre FDI era Economic policies were more protectionists.”License Raj”system followed
.Government commanded the trade and encouraged monopoly indirectly .GDP growth increased
at rate of 1% p.a.In post FDI Era Govt adopted liberalization and globalization and followed free
market policy to encourage foreign investments through automatic route. Transfer of technology
and contributing relatively more to growth than domestic investment Fueling positive GDP,
ensuring huge domestic capital, production level, and employment opportunities are the benefits
of FDI.Growth is urban centric.Foreign investment might have risk of controlling Indian markets
and affects domestic players are its challenges. Attain inclusive growth including agriculture;
Ensuring corruption free administration and elastic procedural management to attract more
Quality FDI and Maintain sound human capital to absorb more FDI benefits are our suggestion.