Make in India and Foreign Direct Investment (FDI) - Synergic Effect on Economic Growth

Make in India and Foreign Direct Investment (FDI) - Synergic Effect on Economic Growth
Author: CMA Lakshmana Rao Udandrao
Publisher:
Total Pages: 11
Release: 2016
Genre:
ISBN:

'Make in India' is the latest momentum initiated by the Central Government with an aim to make India a manufacturing hub for the world. The concept is mooted keeping in view of the strengths of the country in terms of manpower, skill, consumption and abundantly available natural resources.Foreign Direct Investment (FDI) is one of the main sources to supplement domestic capital wherein individuals, enterprises and corporates outside the country invest in India with an objective of 'lasting interest' in the enterprises they invested. In the last ten years, there is a significant increase in Foreign Direct Investment (FDI) into the country in various forms and into various sectors of business. This has led to spur in growth of business activities, increase in GDP, Manufacturing PMI, income levels etc. India being second most populous country in the world with 1.22 billion people and boasts nearly 500 million strong labour force ranging from unskilled workers to good English speaking engineers, doctors, researchers and professionals having potential of making cost-effective research and development based manufacturing. Largest population creates market for goods and brands the country as 'consumption hub', at the same time, pools of strong labour force brands the country as an 'investment destination' for foreign entrepreneurs easing the flow of Foreign Direct Investment. An analysis of FDI inflow into the country vis-a-vis Index of Industrial Production (IIP) for last nine years (2005-06 to 2013-14) indicates that there is a strong positive correlation (r = 0.80) exists between the two. Recently government has put in place an investor-friendly FDI policy under which 100% FDI is permitted under the automatic route in most of the sectors/activities. This helps in economic growth by supplementing domestic capital, technology transfer and adoption of global practices leading to increased manufacturing and productive capacity. Make in India initiative coupled with liberalized FDI policy, key policy changes enabling 'ease of doing businesses' create a synergetic impact on the national economy and galvanize India's economy to reach greater heights!

Foreign Direct Investment (FDI) in India & its Impact on Industrial Development

Foreign Direct Investment (FDI) in India & its Impact on Industrial Development
Author: Dr.Shuchi
Publisher: Sankalp Publication
Total Pages: 266
Release:
Genre: Education
ISBN: 939072015X

FDI in India has a significant role in development of India. FDI in India to various sectors can attain sustained economic growth and development through creation of jobs, expansion of existing manufacturing industries. The inflow of FDI in service sectors and construction and development sector attained substantial sustained economic growth and development through creation of jobs in India.

Make in India and Foreign Direct Investment (FDI) - A Realism Towards India's Manufacturing Hub

Make in India and Foreign Direct Investment (FDI) - A Realism Towards India's Manufacturing Hub
Author: CMA Lakshmana Rao Udandrao
Publisher:
Total Pages: 13
Release: 2017
Genre:
ISBN:

Make in India is an Expansion and growth strategy, launched by Govt. of India, under the Leadership of Prime minister, Sri Narendra Modi on September 25, 2014, to foster Economic Development and strengthen India's manufacturing sector. The main Objective of make in India program is to promote Manufacturing sector and protect Intellectual property, by inviting the investors across the Globe in invest in India and use India most skilled manpower for Growth and development of the country. The campaign aimed at creating jobs to the millions of people in the country and it also attracts Foreign Direct Investment to the country (FDI).

Foreign Direct Investment and Economic Growth

Foreign Direct Investment and Economic Growth
Author: Piyali Roy Chowdhury
Publisher:
Total Pages: 0
Release: 2020
Genre:
ISBN:

The study aims to analyze the importance of economic growth that has more relevance than Foreign Direct Investment (FDI) inflow for a stable development in India. The article takes the period of 1978 to 2019 to analyze the same. It applies Auto Regressive Distributed Lag Modelling Approach to find out the impact of economic growth. It is proved that there is a cointegration between FDI and economic growth in long run. In short run, both economic growth and FDI granger cause each other. Also, there exists a negative effect of FDI on economic growth in short run. Hence, the study recommends a threefold development process in India. The policy makers are suggested aligning the economic policies in a way to focus at the first stage only on economic growth which will bring FDI in India. At the second stage, they need to find relevant macroeconomic variables that will be positively influenced by FDI so that, at the third stage, these variables will ultimately contribute to growth of Indian economy.

Liberalisation of the Indian economy

Liberalisation of the Indian economy
Author: Ajaat Gunti
Publisher: diplom.de
Total Pages: 109
Release: 2002-04-12
Genre: Business & Economics
ISBN: 3832453067

Inhaltsangabe:Abstract: With the onset of reforms to liberalise the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy into the global economy. This era of reforms has also ushered in a remarkable change in the Indian mindset, as it deviates from the traditional values held since Independence in 1947, such as self reliance and socialistic policies of economic development, which mainly due to the inward looking restrictive form of governance, resulted in the isolation, overall backwardness and inefficiency of the economy, amongst a host of other problems. This, despite the fact that India has always had the potential to be on the fast track to prosperity. Now that India is in the process of restructuring her economy, with aspirations of elevating herself from her present desolate position in the world, the need to speed up her economic development is even more imperative. And having witnessed the positive role that Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the Southeast Asian countries and most notably China, India has embarked on an ambitious plan to emulate the successes of her neighbours to the east and is trying to sell herself as a safe and profitable destination for FDI. The main objective of this thesis is to show whether India is really that attractive as a host to FDI and whether she is likely to succeed in her endeavour to be able to use FDI as a tool to accelerate her economic growth. In order to achieve this task, starting with the liberalisation process, there will be a brief description of the economic development of India since Independence and its role in leading to the dire economic situation, which ultimately culminated in the initiation of reforms to open up the economy to foreign investors and competition, whereby the reforms relating, directly and indirectly, to FDI will be closely described. Then there will be a brief explanation of the theoretical background of FDI, i.e. what it exactly means and the driving forces behind it, whereby concentrating mainly on the eclectic theory and then applying it to the prevailing situation in India by concentrating [...]

How Does Foreign Direct Investment Affect Economic Growth

How Does Foreign Direct Investment Affect Economic Growth
Author: Mr.Eduardo Borensztein
Publisher: International Monetary Fund
Total Pages: 26
Release: 1994-09-01
Genre: Business & Economics
ISBN: 1451853270

We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. In addition, FDI has the effect of increasing total investment in the economy more than one for one, which suggests the predominance of complementarity effects with domestic firms.

Strategic Importance of 'Make in India' Campaign to Empower Indian Economy

Strategic Importance of 'Make in India' Campaign to Empower Indian Economy
Author: Irshad Mir
Publisher:
Total Pages: 5
Release: 2017
Genre:
ISBN:

The term “Make in India” was recently publicized in India. It is another name of foreign direct investment with special focus on capital formation sector. The “Make in India” Strategy is launched to attract foreign investors to invest almost in all sectors in India to encourage International Economic Integration. International Economic Integration plays an important role in Economic Development of any country. Foreign Direct Investment is one and only major instrument of attracting International Economic Integration in any economy. It serves as a link between investment and saving. Many developing countries like India are facing the deficit of savings. This deficit can be circumvented with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP. FDI comes handy in the long-term development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, developing infrastructure, increasing productivity and opening up new employment opportunities. In India, FDI is considered as a developmental tool, which helps in achieving self-reliance in various sectors and in overall development of the economy. After Make in India campaign there is fair increase in the flow of foreign direct investment. This research paper analyzes success of “Make in India” strategy to attract more FDI and its role in empowering the Indian economy.

Foreign Direct Investment Inflows in India-Policies and Practices

Foreign Direct Investment Inflows in India-Policies and Practices
Author: Yoginder Singh
Publisher: LAP Lambert Academic Publishing
Total Pages: 136
Release: 2015-04-13
Genre:
ISBN: 9783848437085

Foreign Direct Investment is playing a prominant role globally in the economic growth and development of the nation. The Concept of Foreign Direct Investment is now a part of India's economic future but the term remains vague to many, despite the profound effects on the economy. FDI is allowed up to 51% investment in single brand retail but government is going to open the doors for Multi Brand investment. India is the second most attractive destination for FDI globallyfrom among thirty emergent markets so foreign investors are curious to invest in India in so many sectors. It has made India the cynosure of many foreign eyes. FDI in multi brand can effect our economy by so many way. Government of India is now easing the entry norms for the foreign players to participate in the mission of make in India.

Foreign Investment in India

Foreign Investment in India
Author: Chanchal Chopra
Publisher:
Total Pages: 448
Release: 2003
Genre: Business & Economics
ISBN:

In a world of intensifying competition and technological change, the complementary and catalytic role of foreign capital is very valuable. This book presents an emerging scenario in India with regard to different types foreign capital inflows. It examines the trends and patterns of foreign investment in India in the pre and post liberalization periods vis-a-vis the major policy changes during these periods, The book sheds light on significance of foreign investment, emerging markets. It aptly describes how foreign direct investment helps in the economic development of host country by increasing financial resources, providing technology and enhancing professional skills and deliberates on theoretical underpinnings. The statistical profile and analysis provided in the study is revealing. Chapter on Non-resident India's investment in India is thought provoking and provides the policy variables to attract NRI investments. The book also discusses the role of Foreign Institutional Investors (Fll) in the stock market development and analyses how Euro issues phenomenon has emerged after liberalisation. Tax-related issues in respect of foreign investment are discussed to show how the tax incentives to FDI make the investment competitive against domestic companies. Models of foreign direct investment and portfolio investment are given and the determinants of two types of investments are discussed. Since the Vv7O regime is to be fully operational in coming two years, the book analyses the flow of investment in the context of TRIMS, GATS, TRIPs and highlights the implications of proposed agreements on FDI. The book also suggests a strategy to be followed while analyzing the impact of emerging WTO regime on the inflow of foreign investment. This book deals with all aspects of foreign investments and would be of use to all interested in the study of Foreign Investment in India and to policy-makers and students of management, commerce and economics. In a world of intensifying competition and technological change, the complementary and catalytic role of foreign capital is very valuable. This book presents an emerging scenario in India with regard to different types foreign capital inflows. It examines the trends and patterns of foreign investment in India in the pre and post liberalization periods vis-a-vis the major policy changes during these periods, The book sheds light on significance of foreign investment, emerging markets. It aptly describes how foreign direct investment helps in the economic development of host country by increasing financial resources, providing technology and enhancing professional skills and deliberates on theoretical underpinnings. The statistical profile and analysis provided in the study is revealing. Chapter on Non-resident India's investment in India is thought provoking and provides the policy variables to attract NRI investments. The book also discusses the role of Foreign Institutional Investors (Fll) in the stock market development and analyses how Euro issues phenomenon has emerged after liberalisation. Tax-related issues in respect of foreign investment are discussed to show how the tax incentives to FDI make the investment competitive against domestic companies. Models of foreign direct investment and portfolio investment are given and the determinants of two types of investments are discussed. Since the Vv7O regime is to be fully operational in coming two years, the book analyses the flow of investment in the context of TRIMS, GATS, TRIPs and highlights the implications of proposed agreements on FDI. The book also suggests a strategy to be followed while analyzing the impact of emerging WTO regime on the inflow of foreign investment. This book deals with all aspects of foreign investments and would be of use to all interested in the study of Foreign Investment in India and to policy-makers and students of management, commerce and economics.

An Empirical Study on Foreign Direct Investments Impact on Economic Growth of India

An Empirical Study on Foreign Direct Investments Impact on Economic Growth of India
Author: Dhaduryanaik Merajothu
Publisher:
Total Pages: 8
Release: 2020
Genre:
ISBN:

In the present scenario of the world, the Foreign Direct Investment has become the battlefield for emerging market. The (GDP) is used as independent variables. Therefore, in the present research study, we have covered the time from 2000 to 2019. The objective of the study is to study the impact of foreign direct investment on gross domestic product of India during 2000-01 to 2018-19. In the present study the secondary data was used to analyze the FDI impact on GDP in India, The data has been retrieved from the Reserve Bank of India (RBI) website. In the research hypotheses have been tested using simple linear regression addressing the issues of ordinary least square assumptions. It concludes that The P-value related to FDI is less than 0.05. So, Null hypothesis is rejected and concluded that there is significant impact of FDI on the GDP of Indian Economy.