Since the beginning of liberalization FDI flows to India have steadily grown in importance. In this paper we analyze these flows and their relationship with Indian equity market. Foreign capital flows have particularly become prominent after the advent of globalization that has led to widespread implementation of liberalization programmes and financial reforms in various countries across the globe in 1990s. Foreign portfolio inflows through FDIs, in India, are important from the policy perspective, especially when the country has emerged as one of the most attractive investment destinations in Asia. This paper reveals if the FDIs influence the Indian Equity Market. The present study has concentrated on the trends of FDI Flow in India amid 2000–01 to 2013–14 (up to November, 2013). The study additionally highlights nation astute endorsements of FDI inflows to India and the FDI inflows in distinctive division for the period April 2000 to Nov 2013. The study in light of Secondary data which have been gathered through reports of the Ministry of Commerce and Industry, Department of Industrial Promotion and Policy, Government of India, Reserve Bank of India, and World Investment Report. The study presumes that Mauritius rose as the most predominant wellspring of FDI contributing. It is on account of the India has Double Taxation Avoidance Agreement (DTAA) with Mauritius and the majority of the outside nations like to put resources into administration segment.
Foreign Direct Investment (FDI); Sectors; Country shrewd FDI
