The effect ofliberalizationand globalization of foreign direct investment in India

Foreign direct investment (FDI) has played an important role in the process of globalization during the past two decades. Due to liberalization of policies and globalization, the Foreign Direct Investment (FDI)Inflows are on an increasing trend. Foreign Direct Investment (FDI) has been one of the most fascinating and hot topics among researchers in the field of international trade and commerce. It is an important form of fast international expansion to increase ownership of assets, drive location-specific advantages and acquire additional knowledge. FDI in industrial sectors in India has become a point of discussion due to various reasons. Starting from the service sector, information technology, telecommunication sector, manufacturing etc there is a continuous fluctuation in FDI Inflows over the years. Earlier FDI targeted for manufacturing industries, automobile industries, transportation industry etc., but since a couple of years Service Sector has been attracting the highest FDI inflows The present study is conducted to compare the FDI Inflows to the country during the Pre and Post Liberalization Period and to analyze the change in pattern of sectoral composition of India with the Global FDI inflows. Further an attempt is made to identify the factors which influence Foreign Direct Investment into the country.