Foreign Direct Investment in India: Post -Reform Era

Realizing the importance of the FDI in the economic development ofan economy, the Government of India resorted to major economic structural reforms in 1991. The present paper makes a humble attempt to examine the trends in the growth of the FDI in India as a considerable change has taken place in the FDI in flows in the Indian economy in the post reform period. The time period for the present study ranges from 1991–92 to 2006–07. It has been observed that the FDI inflows have grown substantially in the aforesaid period but not as per the potential of the Indian economy. For improving the FDI inflows in India, various incentives, concessions should be given to the investors so that an investor-friendly environment may be created.