International Trade & FDI in India
INTRODUCTION
Indian market is one of the largest market with high purchasing power. Lot s of work to be done in the field of logistics & supply chain management. It is not possible for Indian government alone to developed world class infrastructure and other allied facilities because of huge investment requirement . FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development. In order to create new & more jobs , FDI is the success mantra now. FDI no doubt is creating innovation in retail sector but simultaneously it may pull down the local and domestic retailers of India which is surely a concern to worry about for Indian government. It reduces the gap between farm prices and retail prices. Gives best management practices from all over the world.
The main objective of this paper is to examine the long-run relationship of Foreign Direct Investment (FDI) & International Trade in the Indian economy. In this paper we study the effects of Foreign Direct Investment (FDI) with respect to India and its economy. We try to analyze the merits and demerits of FDI upon implementation in the Indian domestic market. Finally, the analysis is also motivated by the current worldwide trend towards assessing the impact of FDI on the economy India.
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. FDI inflow into the core sectors is assumed to play a vital role as a source of capital, management, and technology in countries of transition economies. It implies that FDI can have positive effects on a host economy’s development effort. Broadly, foreign
Indian market is one of the largest market with high purchasing power. Lot s of work to be done in the field of logistics & supply chain management. It is not possible for Indian government alone to developed world class infrastructure and other allied facilities because of huge investment requirement . FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development. In order to create new & more jobs , FDI is the success mantra now. FDI no doubt is creating innovation in retail sector but simultaneously it may pull down the local and domestic retailers of India which is surely a concern to worry about for Indian government. It reduces the gap between farm prices and retail prices. Gives best management practices from all over the world.
The main objective of this paper is to examine the long-run relationship of Foreign Direct Investment (FDI) & International Trade in the Indian economy. In this paper we study the effects of Foreign Direct Investment (FDI) with respect to India and its economy. We try to analyze the merits and demerits of FDI upon implementation in the Indian domestic market. Finally, the analysis is also motivated by the current worldwide trend towards assessing the impact of FDI on the economy India.
Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. FDI inflow into the core sectors is assumed to play a vital role as a source of capital, management, and technology in countries of transition economies. It implies that FDI can have positive effects on a host economy’s development effort. Broadly, foreign
References: Wikipedia.org www.tradingeconomics.com www.rbi.org.in