FDI Receiving Companies Trends in Tamil Nadu

In several developing countries, capital is a scarce factor. The low of level of domestic savings becomes inadequate to meet the investment requirements. As such foreign capital is used in developing countries to promote investment and economic growth. In general, higher level of foreign capital will lead to higher rate of economic growth. However, the degree of relationship between foreign capital and economic growth varies in various developing countries due to the influence of a number of macro-economic variables and the stage of economic development. Sometimes, foreign capital may have its spillover effects in future also. In this paper, an attempt is made to analyze the broad trends in FDI receiving companies in Tamil Nadu. To be more specific this chapter describe the FDI receiving companies in terms of FDI Index, Annual growth rate for following variables; Land & building of the FDI receiving companies, Plant and Machinery, Other Fixed Assist, Depreciation, Raw materials & components, finished and semi-finished goods, Cash in handand bank balance, Other current asset, Total current liability, Total Output, Total sales value, total export, Salary and Wages, Total Input, Total Profit (after tax), Import of capital goods, Equity, Income and FDI. This analysis was done using 11 years data over the period from 2006 to 2016 for each variable, depending on the availability of data. Eighty five companies had not received any foreign direct investment till 2016. Hence eighty five companies could not be included for analysis.