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Impact of Foreign Direct Investment on Economic Indicators

MET 17304 Impact of Foreign Direct Investment on Economic Indicators an evidence from India The Indian economy one of the fastest growing economies in the world ranked as the seventh largest economy on the scale of nominal GDP and is the third largest by purchasing power parity PPP after china and the United States of America One of the Key policy paradigm in the history of Indian Economy has been liberalization of Indian economy for Foreign Direct Investment FDI which plays a key role in supplementing the ever increasing investment requirement in the developing countries So is the case with India predominantly a political economy with one of the lowest tax GDP ratios in the world Also Fiscal Responsibility Budget Management FRBM Act 2003 has necessitated fiscal consolidation and has left much less fiscal space for public borrowing FDI therefore can be identified as one of the most effective tools for capital investment and thereby giving a boost to the economic activities The cumulative FDI inflow into India since the year 2000 until September 2017 has risen upto USD 518 bn and FDI in low in equity to the tune of USD 357 bn Major investor countries are Mauritius Singapore Japan UK and Netherlands contributing more than 70 of FDI inflow into India

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