Foreign Direct Investment in India and its impact on balance of payment position analysis: An overview

Abstract

The development of the Indian economy has benefited greatly from foreign direct investment (FDI). In many ways, it has helped India attain some level of financial stability and prosperity.  It has also all owed India to concentrate on the areas that required economic attention and deal with a number of problems that the nation continues to face given that it has the fourth largest economy in the world, India offers numerous opportunities for foreign direct investment across numerous industries.  The Indian government has deregulated the economy and provided enticing possibilities in an effort to draw foreign direct investment in to the nation after realising the potential the nation held for such investments.  Since 1991, the Indian government has been implementing liberalised economic reforms. Always seeking to create prospects for foreign direct investment that are regulated leniently the efforts undertaken by the national Government over a period of time have led to an increase in FDI in India.