*B. Tech (Electronics and Communication), VIT University, Vellore, Tamil Nadu, India
**B. Tech (Computer Science), VIT University, Vellore, Tamil Nadu, India
***Associate Professor, (VIT Business School), VIT University, Vellore, Tamil Nadu, India
Online published on 27 February, 2017.
Foreign Direct Investment plays an important role in Economic Development of any country. Foreign Direct Investment is one of the major instruments of attracting International Economic Integration and development in any economy. It acts as a bridge between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be tackled with the help of Foreign Direct Investment. Foreign investment helps in mitigating the defect of Balance of Payments. The flow of foreign investment is a profit making industry like insurance, real estate and business services and acting as a catalyst for the economic growth in India. This paper analyses FDI inflow in India during the Post Liberalization period. Moreover, the trends of FDI inflow into the country are projected for a period of four years from 2016–2020 using Moving Average Model (MA) forecasting technique and trend analysis. The paper examines the various factors which influence or affect the flow of FDI into the country and suggestive measures to increase the flow of FDI in India and juxtapose the results with that of other developing nations in the world.
Foreign Direct Investment, FDI India, Pre & Post Liberalization Period, Moving Average Model, Trend Analysis
