Analysis of Foreign Direct Investment (FDI) in India and China: A Comparative Study

This paper examines a comparative picture of the foreign Direct Investment (FDI) trend of India and China and provides a bilateral trend of FDI of both countries. The Findings of the study shows that bilateral FDI of India and china are not significantly differ, because the policy of china and India are strategic to each other and want to win the race of growing economy. However the FDI Inward and Outward are significantly differ, the analysis exhibits that china received more FDI from all over the world as compared to India and also outward Investment of china are well ahead as compared to India. It implies that foreign direct investment (FDI) has had a significant positive bearing on the Chinese economy and a noticeably more moderate effect on that of India. The economists and the planners opine alike that one of the ways for the development and growth of an economy is the steady and sustainable promotion and the growth of Foreign Direct Investment (FDI). It is said that FDI has to play a novel role in the world economy. The role of FDI has now transformed from a tool to solve the financial crisis to a modernizing force.