Foreign Direct Investment in India: A Global Fund for Local Development

FDI is the foreign direct investment which comes from foreign countries to host country in the form of investment. FDI trend has been increased with globalization process. It gives benefits to both host and home countries. Especially, developing countries can take greater advantage from FDI for economic development of their nation. The present study analyses the FDI inflow in India in present scenario. This study is purely based on secondary data. The Percentage, Average and Ranking Method are employed for analysis of data. The study found that FDI inflow is steeply decreased in last three years. The Singapore, US and Mauritius are recently the major source of FDI to the Indian economy. In sector wise analysis, it is also found that manufacturing and computer and communication services are sectors in which FDI inflow is relatively more compared to other sectors of the economy. The study finally concludes that FDI is very useful for economic development of any nation. But, its pros and cons must be reviewed timely from host country point of view to ensure that it is supporting economic development of nation.