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Abstract

Foreign Direct Investment (FDI) refers the investment made by the host nation to native nations in the form of joint venture or by buying the purchasing of shares. Or in simple words, FDI (Foreign Direct Investment) refers to the investment made by foreign enterprises in enterprises of host countries. . The foreign investment through direct and indirect way. The Indirect Investment refers to the portfolio investment which means purchasing the stock of an enterprise investment in new issue. In other words portfolio investment defined as an investment made by individuals and firms in foreign financial instruments such as foreign stocks, government bonds etc. The indirect investment by foreign investors provide only a non-controlling interest in the company where the funds are invested but not include the production and distribution of goods and services. For example, investment in securities of a foreign company through stock exchange or under the ADRs (American Depository Receipts) and GDRs (Global Depository Receipts) mechanism. Direct investment defined as the investment in equity capital of a foreign company that gives control over the company management by the investors. The investment are made in open economies which offer above-average growth prospects for the investors.FDI establish either effective control or at least considerable impact over the decision-making. FDI is an investment made by a firm/individual into business interests, located in one country into interests located in another country. FDI takes place when an investor establishing ownership or controlling interest in a foreign company. The purpose of this paper is to examine the pattern and trends of the FDI inflows in India. For this purpose the data was taken from the period of 2000-2018 and AGR and CAGR were used to analyse the trends of FDI in India. The study shows the upward trends of FDI in India.

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