Vol. 1, Issue 6 (2016)
A study on FDI equity inflows in Indian economy
Author(s): Dr. Hamsalakshmi R
Abstract: Government of India embarked upon major economic reforms since mid-1991 with a view to integrate with the world economy and to emerge as a significant player in the globalization process. Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country where foreign investments are being made, it also means achieving technical know-how and generating employment. The Indian government’s favourable policy regime and robust business environment have ensured that foreign capital keeps flowing into the country. The present government has taken many initiative schemes “Make in India” in recent years such as relaxing FDI norms across sectors and it is observed at the end of Dec 2015 a significant contribution were made in different sectors namely trading, services, automobile, telecommunications and computer software and hardware segments. In this background this paper makes an empirical analysis of most attracting FDI destinations and its trends. By applying trend analysis, trend equations and ANOVA it is observed that a significant mean difference of selected segments during the study period.