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PROJECT REPORT

ON

FDI INFLOWS AND ITS IMPACT IN INDIA

  BY

Arif Ismail

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million. The services sector, computer hard"are 6 soft"are, telecommunications, real estate,

construction received ma#imum FDI inflo"s in India and 4auritius is the main source

follo"ed by ingapore, the , the 7, the 8etherlands and 9apan for FDI inflo"s in India.

From the hypothesis it has been found out that there is a positive relationship bet"een FDI

and economy gro"th of India. 3nd thus different suggestion and recommendation are given

to improve the present condition of FDI in India.

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There are many factors that influence the economic condition. :ne of them is FDI. ;ence

there is a need to study the impact of FDI on the change in economy.

O()$c"i*$s

•  The study covers the following objective

•  To study the trends and patterns of ow of FDI.

•  To evaluate the impact of FDI on the economy.

•  To study and analyse the Foreign Direct Investment inows in Service

Sector.

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Data Collection

This study is based on secondary data. The reuired data have been collected from various

sources, i.e., ank!s =eports, various

>ulletins of =eserve >ank of India, publications from 4inistry of ommerce, ?ovt. of India,

@conomic and ocial urvey of 3sia and the Aacific, nited 8ations, 3sian Development:utlook, ountry =eports on @conomic Aolicy and Trade Aractice >ureau of @conomic and

>usiness 3ffairs, Department of tate and from "ebsites of ank, I4F, I, 8T3D, @BI4 >ank, etc. It is a time series data and the relevant data have been

collected for the period &'' to &'*.

AIM, To establish the relationship bet"een FDI and gro"ing trends in the Indian economy.

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FDI "hich led to second generation of economic reforms in India in first decade of this

century. Fourthly, there is a considerable change in the attitude of both the developing and

developed countries to"ards FDI. They both consider FDI as the most suitable form of

e#ternal finance. Fifthly, increase in competition for FDI inflo"s particularly among the

developing nations. The shift of the po"er centre from the "estern countries to the 3sia sub

  continent is yet another reason to take up this study. FDI incentives, removal of restrictions,

 bilateral and regional investment agreements among the 3sian countries and emergence of

3sia as an economic po"erhouse ("ith hina and India emerging as the t"o most promising

economies of the "orld) develops ne" economics in the "orld of industrialised nations. The

study is important from the vie" point of the macroeconomic variables included in the study

as no other study has included the e#planatory variables "hich are included in this study. The

study is appropriate in understanding inflo"s during 00- &''*.