Investment inflows to foster economic development

FDI has become a key component of national development strategies for all most all the countries over the Globe. FDI is considered to be an essential tool for jump-starting economic growth through its bolstering of domestic capital, productivity and employment. The rise in FDI volume was accompanied by a marked change in its composition. India of today can be acknowledged as the one of the fastest growing economy in the world and in this current economic status, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors The Indian real estate industry is likely to grow from US $12 billion in 2005 to US$ 90 billion by 2015. In this context, the research paper would like to focus on the following issues firstly, ranking investment inflows in order to know the variation in selected sectors. Secondly, who are the main external real estate investors into India and also domestic investors abroad, Thirdly, what are the main factors that attracts investors to invest in India. Also the paper has made an attempt, what appropriate strategy would be fruitful in order to make our destination a perennial inflow for a sustainable economy.