FDI in india's Service Sector: Problems and Prospects

Foreign Direct Investment (FDI) has become an asset for developing countries including India. FDI flows to developing economies reached a new high of $778 billion, accounting for 54% of global inflows in 2013 (World Investment Report, UNTAD 2014). And in this Service sector continues to account for largest FDI share. The present study mainly focuses upon the FDI scenario in Service sector of India. The impact of one over the other and degree of association between FDI and GDP growth in services has been measured through applying statistical tools. Also the present challenges with regard to investment in service sector of India and their complementary remedial measures have been discussed in this study.