An Analysis of Foreign Investment Flows in India

P Suresh Babu; S Ganesan

P Suresh Babu Assistant Professor& Head, P.G. and Research Department of Commerce, Government Arts College for women, Nilakottai, Tamil Nadu, India
S Ganesan Assistant Professor& Head, P.G. and Research Department of Commerce, Raja Dorai Singam Government Arts College, Sivagangai, Tamil Nadu, India

Keywords: Foreign Direct Investment (FDI)

Abstract

Foreign Direct Investment (FDI) is a type of investment in to an enterprises in a country by another enterprises located in another country by buying a company in the target country or by expanding operations of an existing business in that country. In the era of globalization FDI takes vital parts in the development of both developing and developed countries. FDI has been associated with improved economic growth and development in the host countries which has led to the emergence of global competition to attract FDI. FDI offers number of benefits like overture of new technology innovative products, and extension of new markets, opportunities of employment and introduction of new skills etc which reflect in the growth of income of any nation. FDI is one of the measures of growing economic globalization investment has always been an issue for the developing economies such as India.