Impact of Foreign Direct Investment on Economic Development of India

‘Globalisation’ and ‘Liberalisation’ constitute the central theme of economic policy in nearly all developing economies now. It is more so in the context of Asian countries. These economies have launched great plans for speedier development of infrastructure and industrial growth in recent decades. As developing economies in general and Indian economy, in particular, have pitched high hopes of support from the foreign direct investment (FDI) in development action, foreign investors see great potential of growth in India and find Indian policy favourable towards foreign investment which allows an equal level playing field for them. This article tries to assess the role of FDI in India and its prospect in future. It also attempts to define FDI, and spell out its characteristics, trends of inflow, participation investing partners and states of ‘Make in India’ move with FDI trends. This article also explains the nature of obstacles on way for large-scale FDI inflow in India.